Asian stocks started the week lower as the coronavirus epidemic fears have returned to markets. Now there are reported over 40,000 confirmed cases with the death toll surpassing 900.
The central bank of China the previous week, announced measures to ease the impact of the coronavirus epidemic adding liquidity in the markets. The Nikkei 225 index finished 0.60% lower at 23,685. The Hang Seng is 0.59% lower at 27241. The Singapore FTSE Straits Times Index finished 0.58% lower at 3163. The Shanghai Composite index closed up 0.51% at 2890. In Australia, the ASX 200 index ended 0.10% lower at 7108.
European indices also started the week lower. The German DAX is 0.42% lower at 13,457. CAC40 index is 0.43% lower at 6,004, while the FTSE MIB in Milan is 0.11% lower at 24,451. In London, the FTSE 100 is 0.47% lower at 7,431.
In commodities markets, the crude oil slide refuelled on coronavirus worries. WTI is 0.78% lower at $49.93. Brent oil is 0.77% lower at $54.05/barrel. Gold price is 0.25% higher at 1,574. The gold technical analysis outlook is bullish as the gold price trades above all daily moving averages. The first resistance stands at $1,611 the recent high, while the support stands at $1,447 the recent low. Silver price is higher; XAGUSD adds 0.54% at $17.77.
Cryptocurrencies gave up early gains and as of writing, the selling pressure accelerates. Bitcoin is 3.48% lower at $9,825 hitting the daily low at $9,679 and the daily high at $10,187. Bitcoin’s momentum is positive as it is trading above the 50 and 100-day MA. Support for Bitcoin stands now at $9,000 while the next support level stands at 8,500.
On the upside, first resistance stands at 10,187 top and then at 10,500 round mark. ETHUSD trades 4.23% lower at 218.75 with capitalization now at 24.04 billion. On the upside first resistance for Ethereum stands at $230.98 recent high while the support stands at $117.09 December low. XRPUSD is 4.20% lower at 0.2701. Litecoin (LTCUSD) is trading 4.58% lower at 73.52. The crypto market capitalization is $281.00 billion.
In the Lookout: Japan Eco Watchers Survey, the Current conditions came in at 41.9, topping the forecasts of 40.5 in January. The Japan Eco Watchers Survey, Outlook registered at 41.8 below expectations of 47.1.
The China Consumer Price Index (MoM) came in at 1.4% above expectations of 0.8% in January. The yearly CPI came in at 5.4%, above expectations of 4.9%. The China Producer Price Index came in at 0.1% in line with forecasts.
The People’s Bank of China (PBOC) set the Yuan reference rate at 6.9863 versus the previous settlement at 6.9768.
Trading Perspective: In the forex, the US dollar index (DXY) is 0.08% lower at 98.62, while the EURUSD IS 0.06 higher at 1.0950. The AUD is 0.32% higher at 0.6694 against the USD. NZDUSD trades 0.14% higher at 0.6412. USDCHF pair is 0.04% higher at 0.9775.
GBPUSD trades 0.36% higher at 1.2927 amid hard Brexit fears after PM Boris Johnson set out tough terms for European Union on negotiations. The Bank of England kept interest rates unchanged as was expected by markets. The initial support for the British pound against the US dollar now stands at 1.28 low which if broken, might push the GBPUSD pair further down towards 1.20. On the upside, first resistance stands at 1.30 and then at 1.3511 recent high.
EURUSD trades 0.07% higher at 1.0951 as the pair’s momentum has turned now negative. The EURUSD broke below the 100-day moving average and now sellers are in control. First resistance for the EURUSD pair stands at 1.1224 January high. On the other hand, support is at 1.0941 today’s low and then at 1.09.
USDJPY is trading 0.01% higher at 109.75, having hit the daily low at 109.55 and the daily high at 109.86. The USDJPY pair will meet initial support at 105.43, the August low. On the upside, immediate resistance for the USDJPY now stands at 110.27, January’s high.
USDCAD trades 0.11% lower at 1.3289, on stronger NFP data from the USA. The USDCAD pair will meet first support at 1.2950, the recent low, while the next support level stands at the 1.29 round figure. On the flip side, resistance will be met at the 1.3066, the high from December 31st.
