Australian stocks and the Aussie rose after the country’s central bank unexpectedly lowered rates by 25 basis points earlier today. This was the fourth rate cut in less than 12 months. The country’s biggest banks responded by cutting interest rates on mortgages. In the monetary statement, Philip Lowe, said that the rate cut will help boost the country’s growth at a time when its biggest trading partner is suffering. The slowdown in China is expected to reflect negatively on Australia, which ships two-thirds of its goods to China. In a tweet, President Trump praised the decision and criticized the Fed for not slashing rates in the US.

The euro declined against the USD after Eurostat released preliminary inflation data for February. The data showed that annual inflation in the euro area rose by 1.2% in February after rising by 1.4% in January. The inflation was driven by food, alcohol, and tobacco, whose price rose by 2.2% in the month. Energy prices declined by 0.3% after rising by 1.9% in January. The core CPI, which excludes the volatile food and energy products, rose from 1.1% in January to 1.2%. Meanwhile, industrial prices rose 0.4% while the unemployment rate remained unchanged at 7.4%. These numbers came a day after Markit received relatively strong manufacturing PMI numbers. In February, the Eurozone manufacturing PMI rose to 49.2 from the previous 47.9. This was its highest level in the past 12 months.

Global stocks rose today as traders hoped for new stimulus from central banks. In Europe, the DAX and Stoxx rose by 2.70% and 2.43%. In Asia, the Shanghai Composite and A50 indices rose by 75 and 45 basis points respectively. In the United States, the Dow is set to open 250 points higher after gaining by more than 1293 points. Similarly, the price of crude oil added to yesterday’s gains by rising by more than 2%. Traders believe that central banks will coordinate on lowering rates. Another reason pushing stocks higher is Joe Biden, who received a major endorsement from Pete Buttigieg and Amy Klobuchar ahead of today’s Super Tuesday.

EUR/USD

The EUR/USD pair declined to an intraday low of 1.1100 from yesterday’s high of 1.1184. The pair has formed a head and shoulder pattern on the hourly chart. The jaws, teeth, and lips of the Alligator indicator appear to be making a bearish crossover on the hourly chart. Similarly, the RSI, which was previously overbought reached a low of 53. All this implies that the pair may continue declining.

XBR/USD

The XBR/USD pair rose to an intraday high of 53.70 ahead of Thursday’s OPEC meeting in Vienna. The price has been rising since Friday when it bottomed at 48.86. The price is above the 38.2% Fibonacci Retracement level on the hourly chart. The price is along the upper line of the Bollinger Bands while the RSI has been rising. The pair may continue rising as markets wait for the decision by OPEC.

S&P500

The S&P500 futures rose to an intraday high of $3102 as optimism returned to the market. The price is above the 38.2% Fibonacci Retracement level on the hourly chart. The money flow index, which is similar to the RSI, has been rising while the price is above the short and medium-term moving averages. The price might continue rising as optimism returns to the market.