XRP's weighted sentiment and funding rates have reached significant low levels, signaling a potential bottom for investors. Meanwhile, global markets are on edge amid concerns over potential US tariffs on the Euro area and the broader implications of ongoing trade disputes. Gold prices have consolidated their recent strong gains, reaching a record high on Monday, as investors seek safe havens amidst market volatility.
The AUD/USD pair is influenced by key speeches from influential Federal Open Market Committee (FOMC) members and news regarding President Donald Trump's tariff policies. Fed Governor Michelle Bowman affirmed that while interest rate cuts are anticipated this year, any future moves should be cautious and gradual, providing some guidance to the markets.
In recent days, XRP investors have realized nearly $2 billion in profits, spurred by Trump's tariffs on Canada, Mexico, and China. The President's plans to impose a 10% universal tariff continue to keep investors vigilant, adding further uncertainty to the economic landscape.
The AUD/USD pair has been attracting fresh sellers amid fears of a US-China trade war and a modest strengthening of the US dollar. An overnight recovery attempt by the AUD/USD pair faltered near a resistance level marked by the 50% Fibonacci retracement level from the January swing high. This suggests that the pair struggles to maintain momentum despite positive developments.
President Trump's tariffs on China have officially taken effect, prompting Beijing to retaliate with counter-tariffs. This escalation in trade tensions has fueled concerns of a prolonged trade war, casting a shadow over global economic growth prospects. The AUD/USD pair has struggled to capitalize on its previous day's recovery move from sub-0.6100 levels, attracting additional sellers on Tuesday.
The 0.6230-0.6235 area remains a crucial pivot point for the AUD/USD pair. Market participants are closely watching this level for signs of either a breakout or further consolidation. President Trump has agreed to delay the implementation of 25% trade tariffs against Canada and Mexico by 30 days, providing temporary relief but leaving uncertainty in its wake.
The Reserve Bank of Australia (RBA) is considering an interest rate cut in February, which is weighing on the Australian dollar and impacting the AUD/USD pair. Speculation around potential monetary policy adjustments adds another layer of complexity to an already volatile market environment.