Asian indices finished higher as worries about the coronavirus spread in China ease after the immediate response from China authorities. The coronavirus revived the SARS outbreak in 2002 which killed over 800 people. China has confirmed 440 cases and nine deaths. There are also confirmed cases now in the US, South Korea, Thailand, Japan, and Taiwan.
The Nikkei 225 closed up 0.70% at 24,031. The Hang Seng finished 1.27% higher at 28,341. The Singapore FTSE Straits Times is 0.29% higher at 3,257, while the Shanghai Composite finished 0.28% higher at 3,060. The ASX 200 index in Australia added 0.94 lower at 7132.
European indices also started higher. The DAX index is 0.37% higher at 13,607. CAC40 is 0.23 higher at 6,059, while the FTSE MIB in Milan is 0.10% higher at 23,871. In London, the FTSE 100 is 0.23% higher at 7,629 after the stronger UK employment data yesterday.
In commodities markets, the crude oil price lower giving up 0.62% at $58.02 after the shut down of two oil-producing facilities in Libya. Brent oil is 0.54% lower at $64.24 per barrel. Gold price trades 0.13% lower at 1,554. The gold outlook is bullish despite the recent correction. The immediate resistance stands at 1,611 the recent high, while the support stands at 1,447 the recent low.
In cryptocurrencies markets, Bitcoin continues the consolidation phase today gives up 0.79% at $8,641, hitting the daily low at $8,602, and the daily high at $8,784. BTCUSD momentum is neutral now as the crypto pair breached below the 200-day moving. Support for BTCUSD stands now at $8,000, while the next support level holds at 7,500.
On the other hand, resistance will be met at 9,925 high and then at 10,000 round figure. Ethereum ETHUSD trades 0.57% lower at 168.29 with capitalization now at 18.43 billion, and on the upside, resistance for ETHUSD stands at 200 recent high while the support stands at 117.09 the previous week low. Litecoin is trading 0.99% higher at 57.64. The crypto market capitalization is $240.15 billion.
In the Lookout: The Japanese PM Shinzo Abe said in a conference that the Japanese economy is gradually recovering, backed by the domestic demand. Yesterday, the BOJ kept monetary policy unchanged, as widely expected.
Australia Westpac Consumer Confidence came in at -1.8% below expectations of -0.8% in January.
South Korea Gross Domestic Product Growth (QoQ) came in at 0% below forecasts of 0.8% in 4Q.
The People’s Bank of China (PBOC) has set the Yuan reference exchange rate at 6.8853 versus yesterday’s fix at 6.8606.
Trading Perspective: In the fx market, the US dollar index trades 0.04 per cent lower at 97.58, the Aussie dollar is 0.09% lower at 0.6838 against the US dollar. NZDUSD trades 0.06% lower at 0.6592. USDCHF is 0.38% higher at 0.9724.
GBPUSD trades 0.08% higher at 1.3057 helped by stronger than expected employment data, and as we are getting closer to the Brexit deadline on January 31st, 2020. First support for the pound against the US dollar now stands at 1.2578 low, which if broken, might push the GBPUSD further down towards 1.20. On the upside, the first resistance will be met at 1.3511 recent high.
EURUSD trades 0.07% higher at 1.1092 as the pair’s short term momentum is neutral now. The first resistance for the EURUSD stands at 1.1224 recent high. On the other hand, support is at 1.1074 today’s low and then at 1.10.
USDJPY is trading 0.09% higher at 109.95, having hit the daily low at 109.82 and the daily high at 110.09. USDJPY will meet support at 105.43 the low from August 22nd. On the upside, initial resistance for the USDJPY now stands at 110.28 recent high.
USDCAD trades 0.01% higher at 1.3071, ahead of the BOC decision. The 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.
