FOREX
The dollar held an upper hand against many of its rivals as other major central banks are seen tilting to a more dovish stance than the Federal Reserve.
EURUSD fetched $1.1335, having dropped 0.25% on Monday, amid expectations the European Central Bank is preparing to give banks more cheap, long-term funding at its policy meeting on Thursday.
USDJPY traded at 111.75 , off a 10-week high of 112.08 on Friday.
The People's Bank of China has set the yuan reference rate at 6.6998 vs the previous day's fix of 6.7049.
AUD/USD is trading @ 0.7085 in the red below the 50-hour moving average hurdle even though Australia's fourth-quarter current account deficit narrowed more-than-expected.
GBP/USD daily chart GBP/USD stretches its slid beneath resistance-turned-support by trading near 1.3175 during early Tuesday.
ECONOMY
On Tuesday , Asian shares stepped back after China cut its growth target for this year to 6.0% to 6.5%, in line with expectations, from around 6.5% last year and pledged measures to support the economy amid growing challenges from rising debt and a dispute over trade and technology with the United States.
Premier Li Keqiang also said the country sees a budget deficit of 2.8 percent of GDP and the Finance Ministry set the quota for local government’s special bond issues at 2.15 trillion yuan, 0.8 trillion yuan above last year’s quota.
On Monday , Wall Street’s major Indices fell , with the Dow Jones shedding 0.79% and the S&P 500 drag 0.39 %.
An unexpected fall in U.S. construction spending, data that normally attracts little attention, was cited as a factor.
MSCI’s World index,, a gauge of 23 developed markets, has risen 16.6 percent from its near two-year low set on Dec. 26 low, even as the earnings outlook stagnated, driven by hopes of a dovish Fed and a compromise between Beijing and Washington on trade. The index is now trading at 14.6 times expected earnings, the highest level since early October, when a bear market began globally.
Thus a media report on Monday that U.S. President Donald Trump and Chinese President Xi Jinping could reach a formal trade deal at a summit around March 27 prompted profit-taking rather than follow-through buying.
The 10-year U.S. Treasuries yield dropped to 2.724% after touching from six-week highs of 2.768 % in the past two sessions.
METAL & ENERGY
Gold has fallen for four days in a row by Monday to as low as $1,283.10 per ounce, its lowest level since Jan. 25. It last stood at $1,286.6.
Silver hit two-month lows of $15.0725 per ounce.
Oil prices held firm after OPEC ally Russia said it would ramp up supply cuts.
U.S. crude futures stood at $56.41 per barrel, down 0.3% in early Asia but still up 1% on the week.
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