Asian Stocks Higher Ahead of Fed Decision and Dec 15 Tariff Deadline

Nikolas Papas

Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).

Fed

Asian Stocks Higher Ahead of Fed Decision 

December 11, 2019

Asian indices ended mostly higher on Wednesday as traders await the Fed decision later today while keeping an eye on the trade talks negotiations as we approach the December 15th deadline of new tariffs on Chinese imports. The Nikkei 225 index ended at 0.08% lower at 23,391.

The Hang Seng index is 0.66% higher at 26,608. The Singapore FTSE Straits Times Index ended 0.60% higher at 3,181, while the Shanghai Composite is 0.23% higher at 2,924. The ASX 200 finished 0.68% higher at 6,752.  

European indices started the day higher, DAX trading 0.34% higher at 13,114, the CAC40 is 0.07 per cent higher at 5,851, while the FTSE MIB in Milan is 0.03 per cent lower at 23,121. In London, FTSE 100 is 0.40% higher at 7,242. 

tariff deadline
XAUUSD Daily Chart

In commodities markets, crude oil trades 0.49 per cent lower at $58.95 close to two-month highs after OPEC agreed to cut crude oil output by 500,000 barrels per day until June. Brent oil is trading 0.59% lower at $63.84 per barrel as crude oil demand will be affected by the global growth slowdown.

Gold price trades higher at 1,463, after stronger NFP data last Friday, as the short term turns negative after the gold prices trade below the 20-day moving average and below the 50 and 100-day moving averages. On the upside, resistance stands at 1,555.13 YTD high while support is at 1,448 the recent low.       

In cryptocurrencies, the bitcoin correction continues for the second day at 7,188, hitting the daily low at 7,162 and the daily high at 7,258. Bitcoin momentum is still bearish as the cryptocurrency trades below the 50 and 200-day MA. Immediate support for bitcoin stands now at $6,510 recent low, while the next support holds at 6,000 round figure.

On the upside, resistance stands at 9,925 high and then at 10,000 round figure. ETHUSD also trades lower at 144.06 with capitalization now at 15.88 billion, immediate resistance for Ethereum stands at 200 recent high while the support stands at 139.71 daily low, Litecoin is also under selling pressure at 43.74. The crypto market capitalization stands at $196.93 billion.

tariff deadline
BTCUSD Daily Chart

In the Lookout: Japan Producer Price Index (MoM) came in at 0.2%, beating expectations of 0.1% in November Japan, while the yearly reading came in at 0.1% above forecasts of 0%. The Japan BSI Large Manufacturing Conditions Index (QoQ) came in at -7.8 below expectations of 4.5 in 4Q. 

Australia Westpac Consumer Confidence came in at -1.9% below expectations of -0.7% in December. 

The New Zealand Electronic Card Retail Sales (MoM) came in at 2.6% above expectations of 0.5% in November, the yearly reading came in at 5.1% beating expectations of 1.5%. 

The central bank of China (PBOC) set the Yuan reference rate (USDCNH) at 7.0385 versus yesterday’s settlement at 7.0400.

  

Trading Perspective: In forex markets, the USD index trades 0.01 per cent higher at 97.53, the AUDUSD trades 0.11 per cent higher at 0.6816, while NZDUSD trades 0.27% lower at 0.6527. USDCHF is 0.07% higher at 0.9851.

GBPUSD trades 0.14% lower at 1.3135 retreating from seven-month highs as we are getting closer to the general election and the Brexit deadline on January 31st, 2020. The first support for the pair now stands at 1.2578 recent low which if broken, might accelerate the slide further towards 1.20. On the other hand, immediate resistance will be met at 1.3180 recent high.

EURUSD trades 0.04% lower at 1.1087 as the pair’s momentum has turned positive for the short term. The first resistance for the EURUSD stands at 1.1172 recent high. On the downside, the first support is at 1.1085 today’s low and then at 1.1003.

USDJPY is trading 0.02% higher at 108.74 having hit the daily low at 108.65 and the daily high at 108.85. USDJPY pair will meet support at 104.44 the low from August 23rd. On the upside, resistance for the USDJPY now stands at 109.07 recent high.

USDCAD is trading 0.01% higher at 1.3231, the pair will find support at 1.3017 the yearly low while extra support stands at 1.30 round figure. On the other hand, resistance will be met at the 1.3355 the high from September 3rd before an attempt to 1.3450 top from 31st May.  

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