Asian stock indices rebound and finished mixed helped by upbeat economic data from China and a positive close in Wall Street. Investors are trying to reaccess the risks of the Coronavirus outbreak.
The World Health Organization (WHO) declared a global emergency as the coronavirus spread to 19 countries. Now they have reported 7700 coronavirus cases confirmed while the death toll rises to 170. The data now shows that coronavirus is spreading faster than SARS. Airline and consumer goods stocks continue to be under pressure.
The Nikkei 225 finished 0.99% higher at 23,205. The Hang Seng index ended 0.32% lower at 26357. The Singapore FTSE Straits Times Index is 0.67% lower at 3149. In Australia the ASX 200 closed up 0.1% at 7017, making January the best start to a new year since January 2012.
European indices started mixed the trading session. The DAX index is 0.29% higher at 13,190. CAC40 is 0.20 higher at 5,883 as the French economy shrinks in 4Q, while the FTSE MIB in Milan is 0.08% higher at 23,800. In London, the FTSE 100 is 0.27% lower at 7,361.
In commodities markets, the crude oil price rebounds today, adding 1.65% at $53.00 amid global growth concerns after the coronavirus outbreak. Brent oil is 1.45% higher at $58.16 per barrel. Gold price consolidates at 1,573. The gold outlook is positive as the gold price momentum is positive above $1560. The initial resistance stands at 1,611 the recent high, while the support stands at 1,447 the recent low.
Cryptocurrencies consolidate at recent highs, today BTCUSD is 1.46% lower at $9,361 hitting the daily low at $9,291 and the daily high at $9,559. Bitcoin momentum is bullish now as the BTCUSD pair trading above the 50 and 100-day MA. Support for BTCUSD stands now at $8,000 while the next support level stands at 7,500.
On the upside, first resistance will be met at 9,925 high and then at 10,000 round figure. Ethereum (ETHUSD) trades 1.04% lower at 182.38 with capitalization now at 20.00 billion, on the upside resistance for ETHUSD stands at 200 recent high while the support stands at 117.09 the previous week low. Ripple – XRPUSD is 0.65% lower at 0.2415. Litecoin (LTCUSD) is trading 0.93% lower at 67.16. The crypto market capitalization is $258.43 billion.
In the Lookout: The Japan Housing Starts (YoY) came in at -7.9% above the forecasts of -11.5% in December. The Actual Construction Orders (YoY) came in at 21.4% topping forecasts of -2%. The Annualized Housing Starts came in at 0.852M versus 0.834M.
The China Non-Manufacturing PMI came in at 54.1, above forecasts of 53.5 in January, while the Manufacturing PMI came in at 50 in line with forecasts for January.
Trading Perspective: In the fx market, the US dollar index (DXY) trades 0.07 per cent higher at 97.93, the EURUSD is 0.10% lower at 1.1020. The AUDUSD pair is 0.09% lower at 0.6715. NZDUSD trades 0.07% lower at 0.6480. USDCHF pair is 0.15% higher at 0.9708.
GBPUSD trades 0.16% higher at 1.3116 after the Bank of England kept interest rates unchanged. The first support for the British pound against the US dollar now stands at 1.2578 low which if broken, might push the GBPUSD pair further down towards 1.20. On the upside, the first resistance stands at 1.3511 recent high.
EURUSD trades 0.10% lower at 1.1020 as the pair’s momentum has turned now negative. The EURUSD pierced below the 100-day moving average and now sellers are in control. The first resistance for the EURUSD stands at 1.1224 recent high. On the other hand, support is at 1.1016 today’s low and then at 1.10.
In euro futures, the open interest decreased by 26 contracts and volume increased by 3.100 contracts.
USDJPY is trading 0.07% higher at 109.02, having hit the daily low at 108.87 and the daily high at 109.12. USDJPY will meet support at 105.43 the August low. On the upside, initial resistance for the USDJPY now stands at 110.28 January high.
USDCAD trades 0.11% higher at 1.3223, as the Bank of Canada the previous week kept interest rates unchanged. The USDCAD 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.
