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Asian Stocks Rally on Stronger Economic Data from China

Asian stocks rally finished higher mirroring the rally in New York on Phase One deal between China and the USA and robust economic data from China.

The Nikkei 225 benchmark ended 2.55% higher at 24,023. The Hang Seng index is 1.12% higher at 27,817. The Singapore FTSE Straits Times benchmark is 0.31% lower at 3,196 while the Shanghai Composite is 1.27% higher at 3,022. The ASX 200 finished 0.04% lower at 6,847.  

European indices started the session lower, DAX is 0.38% lower at 13,356, the CAC40 is 0.21 per cent lower at 5,978, while the FTSE MIB in Milan is 0.01 per cent higher at 23,524. In London, FTSE 100 is 0.13% lower at 7,509 as the GBPUSD trades lower at 1.3201. 

In commodities markets, crude oil trades 0.13 per cent higher at $60.29 at two-month highs after OPEC agreed to reduce oil output by 500,000 barrels per day until June. Brent oil is trading 0.24% higher at $65.50 per barrel on improved global growth prospects. Gold prices trade 0.20% higher at 1,478, amid USD weakness across the board as the short term turns neutral after the gold prices trade above the 20-day moving average and below the 50 and 100-day moving averages. On the upside, significant resistance stands at 1,555.13 YTD high while support is at 1,448 the recent low.       

In crypto markets, BTCUSD breached the $7,000 mark hitting the daily low at $6,790 and the daily high at 6,885. Bitcoin momentum is clearly bearish as the cryptocurrency trades below the 100 and 200-day MA. First support for bitcoin stands now at $6,510 recent low, while the next support holds at 6,000 round figure.

asian stocks rally
BTCUSD Daily Chart

On the other side, resistance stands at 9,925 high and then at 10,000 round figure. ETHUSD also trades lower at 129.93 with capitalization now at 14.40 billion, on the upside resistance for Ethereum stands at 200 recent high while the support stands at 128.19 daily low. Litecoin (LTCUSD) is also under selling pressure at 39.08. The crypto market capitalization stands at $186.38 billion.

In the Lookout: International Monetary Fund (IMF) head Kristalina Georgieva estimate that China’s growth will be around 6% next year, up from the IMF’s previous forecast of 5.8% made in October.

In Australia, Home Loans came in at 0.6%, below expectations of 1% in October. 

The New Zealand ANZ Business Confidence came in at -13.2 topping forecasts of -13.6 in December, the Activity Outlook came in at 17.2%, below estimates of 17.5%. 

The central bank of China (PBOC) set the Yuan reference exchange rate (USDCNH) at 6.9971 versus yesterday’s settlement at 6.9915.


Trading Perspective: In forex markets, the US dollar index trades 0.14 per cent higher at 97.28, the AUDUSD trades 0.55 per cent lower at 0.6847, while NZDUSD trades 0.32% lower at 0.6572. USDCHF is 0.13% higher at 0.9837.

GBPUSD trades 1.13% lower at 1.3183  as we are getting closer to the Brexit deadline on January 31st, 2020. The first support for the pound against the dollar now stands at 1.2578 recent low which if broken, might accelerate the slide further towards 1.20. On the upside, the first resistance will be met at 1.3511 recent high.

EURUSD trades 0.09% lower at 1.1133 as the pair’s momentum has turned positive for the short term. The first resistance for the EURUSD stands at 1.1199 recent top. On the downside, the first support is at 1.1128 today’s low and then at 1.11.

asian stocks rally
EURUSD Daily Chart

USDJPY is trading 0.06% higher at 109.60 having hit the daily low at 109.48 and the daily high at 109.62. USDJPY pair will meet support at 105.44 the low from August 22nd. On the upside, resistance for the USDJPY now stands at 109.69 recent top.

USDCAD is trading 0.22% higher at 1.3178, the pair will meet support at 1.3017 the yearly low while extra support stands at 1.30 round figure. On the upside, resistance will be met at the 1.3355 the top from September 3rd before an attempt to 1.3450 high from 31st May.