Asian Indices Higher Crude Oil Rebounds

Asian stocks ended mostly higher as the coronavirus fears ease on lower growth of reported new cases. Now there are reported over 42,000 confirmed cases with the death tall surpassing 1000. A lower infection rate, and the increasing bets that central banks will step in to inject liquidity when needed, has allowed risk appetite to return to markets.

The PBOC the previous week, announced measures to ease the impact of the coronavirus epidemic adding liquidity in the markets. The Hang Seng is 1.26% higher at 27583. The Singapore FTSE Straits Times Index finished 0.39% higher at 3175. The Shanghai Composite index closed up 0.39% at 2901. In Australia, the ASX 200 index ended 0.61% higher at 7055.

European indices started the day higher. The German DAX is 0.79% higher at 13,600 close to all-time highs. CAC40 index is 0.38% higher at 6,038, while the FTSE MIB in Milan is 0.61% higher at 24,657. In London, the FTSE 100 is 0.81% higher at 7,507.

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In commodities markets, the crude oil rebounds from recent lows. WTI crude is 1.92% higher at $50.52. Brent oil is 2.08% higher at $54.38/barrel. Gold price is 0.15% lower at 1,569. 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 lower, XAGUSD gives up 0.21% at $17.70.

Cryptocurrencies are under selling pressure for the second consecutive trading session. Bitcoin is 0.28% higher at $9,869 hitting the daily low at $9,695 and the daily high at $9,885. Bitcoin momentum is positive as it is trading above the 50 and 100-day MA. Support for BTCUSD 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 0.78% higher at 224.47 with capitalization now at 24.52 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 0.58% higher at 0.2735. Litecoin (LTCUSD) is 1.47% higher at 74.67. The crypto market capitalization is $284.03 billion.

In the Lookout: Australia National Australia Bank’s Business Conditions below came in at 3 below the forecasts of 4 in January. The Business Confidence came in at-1 below expectations of 0 in January.

The People’s Bank of China (PBOC) set the Yuan reference rate at 6.9897 versus the previous settlement at 6.9863.

Trading Perspective: In the forex, the US dollar index (DXY) is 0.04% lower at 98.81. The AUDUSD is 0.37% higher at 0.6711. NZDUSD trades 0.17% higher at 0.6394. USDCHF pair is 0.04% higher at 0.9776.

GBPUSD trades 0.16% higher at 1.2936 after stronger than expected UK GDP data and amid hard Brexit fears. The initial support for the British pound 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, initial resistance stands at 1.30 and then at 1.3511 recent high.

EURUSD trades 0.03% higher at 1.0914 as the pair’s momentum has turned now negative. The EURUSD pair broke below the 100-day moving average and now sellers are in control. The first resistance for the EURUSD pair stands at 1.1224 January high. On the other hand, support is at 1.0905 today’s low and then at 1.0850.

USDJPY is trading 0.07% higher at 109.85, having hit the daily low at 109.73 and the daily high at 109.94. 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 high.

USDCAD trades 0.19% lower at 1.3291. 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.