Stocks stay in tight ranges amid Fed pause speculation. Asian equities rose on Tuesday as weak U.S. economic data bolstered predictions that the Federal Reserve may not raise interest rates next week.

MSCI’s broadest index of Asia-Pacific equities outside Japan (.MIAPJ0000PUS) rebounded 0.17%, while Tokyo’s Nikkei (.N225) rose 0.65%.

Eurostoxx 50 futures were down 0.05%, German DAX futures fell 0.06%, and FTSE futures fell 0.04%.

After the central bank lifted interest rates by a quarter-point to an 11-year high, the Aussie currency rose, and the S&P/ASX 200 index (.AXJO) fell 1%.

The Reserve Bank of Australia advised more tightening to return inflation to target.

“If May’s decision to hike was ‘finely balanced’, then today’s hike should have been a no-brainer given their monthly inflation gauge ripped higher and around a quarter of Australia’s workforce is about to receive a bumper pay rise,” said City Index senior market analyst Matt Simpson.

Next week, the Fed, the European Central Bank, and the Bank of Japan will make monetary policy decisions following the RBA’s action.

Economic indicators and last week’s Fed dovishness have bolstered expectations that the Fed will not raise interest rates at its June 13-14 meeting.

According to CME FedWatch, markets expect the Fed to remain at 82%, up from 36% a week earlier.

Overnight data indicated that the U.S. services sector barely increased in May as new orders slowed, lowering a gauge of business input costs to a three-year low, which could help the Fed combat inflation.

Over two-thirds of the U.S. economy is services.

“The index sends another signal that demand is cooling and that the cumulative tightening is working through the economy, giving room for the Fed to pause in June to assess conditions further,” Saxo Markets strategists told clients.

In May, U.S. nonfarm payrolls increased by 339,000 jobs, but the unemployment rate jumped to a seven-month high of 3.7%.

“The tactical risk for equity investors in the very near term is that the Fed indeed skips a meeting and raises rates in July and not June,” said Dalma Capital CIO Gary Dugan.

“The vibrancy of growth, the debt ceiling as an issue out of the way now, and a slow-moving Fed might just trigger a further rally in equities.”

In China, prospects of policy easing to boost the slow economic recovery and “candid” conversations between senior U.S. and Chinese officials lifted sentiment. As a result, the Hang Seng (.HSI) rose 0.68%, while the Shanghai Composite Index (.SSEC) fell 0.09%.

After Saudi Arabia, the world’s largest oil exporter announced a production cut, oil prices fell. U.S. crude declined 0.26% to $71.96 a barrel, while Brent fell 0.17% to $76.58.

Saxo strategists said recession concerns, greater Fed rate reduction, or China stimulus measures might be needed to shift the energy market mood.

“OPEC is focused on market stability, but second-half risks of a tighter market remain.”

The dollar index, which tracks the dollar against six major peers, declined 0.144%, while the euro rose 0.12% to $1.0725.

The yen fell 0.10% to 139.44 per dollar, while the pound rose 0.09% to $1.2448.

Bitcoin dropped over 5% overnight to $25,780 as the U.S. securities regulator sued crypto exchange Binance, another blow to the industry.