crude oilAsian stocks rallied, following gains in U.S. equities and the dollar, as concern eased on President Donald Trump’s proposed tariffs. The yen weakened and Treasuries held losses. Trump’s surprise announcement Thursday that he intends to implement tough tariffs on steel and aluminium imports roiled global financial markets, though those concerns are being dialled back as investors speculate the president’s talk won’t translate into the most severe protectionist policies. Sentiment was also supported by receding risk aversion in Europe with the euro gaining support from the creation of a coalition government in Germany and the impact of Italy’s inconclusive election results limited to a mild sell-off in domestic bonds and stocks.

Oil prices extended gains on Tuesday for the fifth straight day, underpinned by robust demand forecasts and prospects for informal contacts sought by OPEC with U.S. shale oil producers at a key industry meeting in Houston this week. Meanwhile, OPEC oil ministers, U.S. shale oil producers and other global oil industry leaders gathered in Houston as CERAWeek, the largest energy industry get-together, kicked off on Monday. The gathering comes against the backdrop of an extension in output cuts led by OPEC, along with other oil producers including Russia, in a bid to absorb a global oil glut and boost prices. Higher U.S. oil production has hampered OPEC’s drive to reduce global supply, however.

In the currency market, the euro managed to recover losses made on Monday after two anti-establishment leaders made early plays to govern Italy following an inconclusive election where voters shunted mainstream parties to the side-lines. The economic calendar for today has the main economic event of the Reserve Bank of Australia monetary policy decision, the Inflation Rate in Switzerland and Russia, the Construction PMI in Germany, the Ivey PMI in Canada, and the Economic Optimism Index in US. Increased volatility and price action is probably expected for the Australian Dollar and the AUD/USD currency pair.