Asian indices finished sharply lower amid worries about the coronavirus spread in China and after Moody’s downgraded Hong Kong’s credit rating. Stocks retreat from 20-month highs. Investors sentiment the last trading sessions supported by the signing of the phase one trade deal, and the fresh record highs in Wall Street.
The Nikkei 225 closed down 0.91% at 23,864. The Hang Seng finished 2.81% lower at 27,985. The Singapore FTSE Straits Times is 1.00% lower at 3,247 while the Shanghai Composite finished 1.44% lower at 3,052. The ASX 200 index in Australia eased from record highs finishing 0.2% lower at 7066.
European indices also started lower. The DAX index is 0.45% lower at 13,488. CAC40 is 1.05 lower at 6,014 while the FTSE MIB in Milan is 1.44% lower at 23,655. In London, the FTSE 100 is 1.22% lower at 7,558 despite stronger UK employment data.
In commodities markets, the crude oil price is 0.92% lower at $58.04 after the shut down of two oil-producing facilities in Libya. Brent oil is 1.20% lower at $64.42 per barrel. Gold price trades 0.32% lower at 1,555. The gold outlook is bullish despite the recent correction. The immediate resistance stands at 1,611 the recent high, while the support stands at 1,447 the recent low.
In cryptocurrencies markets, Bitcoin consolidates today adding 0.23% at $8,644 hitting the daily low at $8,577 and the daily high at $8,729. BTCUSD momentum is neutral now as the crypto pair breached below the 200-day moving. Support for BTCUSD stands now at $8,000, while the next support level holds at 7,500.
On the other hand, resistance will be met at 9,925 high and then at 10,000 round figure. Ethereum ETHUSD trades 0.56 higher at 167.54 with capitalization now at 18.31 billion, on the upside resistance for ETHUSD stands at 200 recent high while the support stands at 117.09 the previous week low, Litecoin is trading 1.08% higher at 57.64. The crypto market cap capitalization is $233.99 billion.
In the Lookout: The New Zealand Business NZ PSI fell from the previous 53.3 to 51.9 in December.
BOJ kept monetary policy unchanged, as widely expected.
Fitch credit rating agency affirmed Germany at AAA, with a stable outlook.
The People’s Bank of China (PBOC) has set the Yuan reference exchange rate at 6.8606 versus yesterday’s fix at 6.8664.
Trading Perspective: In the fx market, the US dollar index trades 0.11 per cent lower at 97.51, the Aussie dollar is 0.20% lower at 0.6858 against the US dollar. NZDUSD trades 0.09% lower at 0.6600. USDCHF is 0.09% lower at 0.9671.
GBPUSD trades 0.22% higher at 1.2991 after stronger than expected employment data and as we are getting closer to the Brexit deadline on January 31st, 2020. First support for the pound against the US dollar now stands at 1.2578 low which if broken, might push the GBPUSD further down towards 1.20. On the upside, the first resistance will be met at 1.3511 recent high.
EURUSD trades 0.08% higher at 1.1102 as the pair’s short term momentum is neutral now. The first resistance for the EURUSD stands at 1.1224 recent high. On the other hand, support is at 1.1085 today’s low and then at 1.10.
USDJPY is trading 0.18% lower at 109.98, having hit the daily low at 109.88 and the daily high at 110.21. USDJPY will meet support at 105.43 the low from August 22nd. On the upside, initial resistance for the USDJPY now stands at 110.28 recent high.
USDCAD trades 0.15% higher at 1.3067, ahead of the BOC decision later this week. The pair will meet first support at 1.2950 the recent low while the next support level stands at 1.29 round figure. On the flip side, resistance will be met at the 1.3066 the high from December 31st.
