Asian Stocks Retreat as Coronavirus Cases Increase

Asian stocks retreated today after an increase in confirmed coronavirus cases.  Yesterday, we had reports of 14,850 new coronavirus cases (COVID19) in one day and 243 deaths. Now in total, there are 60,350 confirmed cases, and 1,369 deaths confirmed while 6,075 patients have recovered.

In the last 12 hours, the recent optimism faded amid the increasing cases. The Chinese government has removed the officials heading the Hubei province at the centre of the outbreak.

Nikkei 225 finished 0.14% lower at 23827. The Hang Seng is 0.34% lower at 27730. The Singapore FTSE Straits Times Index finished 0.10% lower at 3220. The Shanghai Composite index closed down 0.71% at 2906. In Australia, the ASX 200 benchmark ended 0.21% higher at 7103. 

European indices are also trading lower. The German DAX is 1.04% lower at 13,606, retreating from all-time highs. CAC40 index is 1.23% lower at 6,030, while the FTSE MIB in Milan is 0.95% lower at 24,624. In London, the FTSE 100 is 1.65% lower at 7,410 amid GBP strength. 

coronavirus cases
XAUUSD Daily Chart

In the commodities markets, crude oil resumes the downtrend below $51. WTI crude is 0.41% lower at $50.99. Brent oil is 1.76% lower at $55.30 per barrel. Gold price is 0.49% higher at 1,573 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 stands at $1,611 the recent high, while the support stands at $1,447 the recent low. Silver is 0.94% higher at $17.63.    

Cryptocurrencies retreat from recent highs today. BTCUSD is 2.28% lower at $10,112 hitting the daily low at $10,057 and the daily high at $10,495. Bitcoin momentum is bullish as it is trading above all major daily moving averages. Support for bitcoin stands now at $9,000 while the next significant support level stands at 8,500.

On the upside, first resistance stands at 10,495 top and then at 10,800 round mark. Ethereum trades 2.89% lower at 261.25 with capitalization now at 28.66 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 2.34% higher at 0.3119. Litecoin (LTCUSD) is 2.56% lower at 79.22. The crypto market capitalization is now at $297.11 billion.

In the Lookout: Australia Consumer Inflation Expectations came in at 4% below the estimates of 4.3% in February.  

The Japan Producer Price Index (MoM) came in at 0.2%, topping forecasts of 0% in January. The yearly reading came in at 1.7% above expectations of 1.5%.  

The People’s Bank of China (PBOC) set the Yuan reference rate at 6.9785 versus the previous settlement at 6.9718. 

Trading Perspective: In the forex market, the US dollar index (DXY) is 0.02% higher at 99.04. The AUDUSD is 0.12% lower at 0.6728. NZDUSD trades 0.24% lower at 0.6449. USDCHF pair is 0.03% higher at 0.9785.

GBPUSD trades 0.39% higher at 1.3010 boosted by stronger than expected UK GDP data. The immediate support for the GBP against the US dollar now stands at 1.28 low which if broken, might push the pair further down towards 1.20. On the upside, first resistance stands at 1.32 and then at 1.3511 recent high.

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GBPUSD Daily Chart

EURUSD trades 0.16% lower at 1.0855 as the pair’s momentum has turned now negative. The EURUSD pair broke below the 100-day moving average and now bears are in control. First resistance for the EURUSD pair will be met at 1.1224 2020 high. On the other hand, support is at 1.0852 today’s low and then at 1.0803.

USDJPY is trading 0.31% lower at 109.68, having hit the daily low at 109.61 and the daily high at 110.08. The USDJPY will meet initial support at 105.43 the August low. On the upside, first resistance for the USDJPY now stands at 110.27 January high.

USDCAD trades 0.10% higher at 1.3262. 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