Coronavirus

Asian Stocks Mixed, Crude Oil Rebounds 

Asian indices ended mixed on virus uncertainty as investors are confused about the coronavirus outbreak and the impact in the global economy.  Chinese government revised its methodology for reporting coronavirus infections leading to a sharp rise in the number of infections. 

Yesterday, China reported 14,850 new coronavirus cases (COVID19) and 243 deaths. There are 60,350 confirmed cases now, and 1,369 deaths confirmed while 6,075 patients have recovered. The Chinese government removed several officials heading the Hubei province at the centre of the outbreak.

Nikkei 225 finished 0.59% lower at 23687. The Hang Seng is 0.33% higher at 27821. The Singapore FTSE Straits Times finished 0.08% lower at 3217. The Shanghai Composite index closed up 0.38% at 2917. In Australia, the ASX 200 index ended 0.40% higher at 7130. 

European stock indices are trading mixed. The German DAX is 0.05% higher at 13,752 close to all-time highs. CAC40 index is 0.17% lower at 6,082, while the FTSE MIB in Milan is 0.03% lower at 24,884. In London, the FTSE 100 is 0.06% higher at 7,456.  

In the commodities markets, crude oil consolidates today the WTI crude is 0.37% higher at $51.61. Brent oil is 0.37% higher at $56.55 per barrel. Gold price is 0.05% higher at 1,575 as investors shift their attention to safe-haven assets. The gold technical analysis outlook is bullish as the gold trades above all crucial daily moving averages. The first resistance will be met at $1,611 the recent high, while the support stands at $1,447 the recent low. Silver is 0.33% higher at $17.68.    

virus uncertainty
BTCUSD Daily Chart

Cryptocurrencies correction continues for the second day. BTCUSD is 0.78% lower at $10,151 hitting the daily low at $10,061 and the daily high at $10,277. Bitcoin momentum is positive as it is trading above all major daily moving averages. Support for bitcoin stands now at $9,000 while the next significant support stands at 8,500.

On the upside, resistance stands at 10,495 top and then at 10,800 round mark. Ethereum ETHUSD trades 0.97% lower at 266.33 with capitalization now at 29.29 billion. On the upside, first resistance for ETHUSD stands at $274.18 recent high while the support stands at $213.47 the February low. XRPUSD is 0.91% lower at 0.3241. Litecoin (LTCUSD) is 0.32% higher at 80.81. The crypto market capitalization is now at $300.19 billion.

In the Lookout: The New Zealand Food Price Index (MoM) came in at 2.1% above the forecasts of 0.2% in January. The New Zealand Business NZ PMI came in at 49.6 below the expectations of 51 in January. 

The People’s Bank of China (PBOC) set the Yuan reference rate at 6.9843 versus the previous settlement at 6.9785. 

Trading Perspective: In the foreign exchange market, the US dollar index (DXY) is 0.03% higher at 99.07. The AUDUSD is 0.08% higher at 0.6724. NZDUSD trades 0.01% lower at 0.6436. USDCHF pair is 0.11% higher at 0.9805.

virus uncertainty
AUDUSD Daily Chart

GBPUSD trades 0.04% lower at 1.3030 on stronger economic UK data. The immediate support for the GBP against the USD now stands at 1.28 low which if broken, might push the GBPUSD pair further down towards 1.20. On the upside, the first resistance stands at 1.32 and then at 1.3511 recent high.

EURUSD trades 0.06% HIGHER at 1.0844 as the pair’s momentum is now negative. EURUSD pair broke below the 100-day moving average and now bears are in control. The first resistance for the EURUSD pair will be met at 1.1224, the 2020 high. On the other hand, the first support is at 1.0826, today’s low and then at 1.0803.

USDJPY is trading 0.01% lower at 109.80, having hit the daily low at 109.72 and the daily high at 109.90. The USDJPY will meet first support at 105.43 the August low. On the upside, resistance for the USDJPY now stands at 110.27 January high.

USDCAD trades 0.11% lower at 1.3252. The USDCAD will meet support at 1.2950 the recent low while the next support level stands at 1.29 round figure. On the other side, resistance will be met at 1.3066, the high from December 31st