Liquidity Injection Boosts Stocks, Gold, Oil

Asian stocks managed to rebound on Tuesday as the monetary and fiscal injection measures finally manage to calm investors. The Federal Reserve announced yesterday the purchase of more US government debt in the amounts needed to support economic activity, in an attempt to combat the coronavirus impact on the economy. 

Coronavirus confirmed cases top 380,000 while the death toll rises to 16,500, according to John Hopkins University. Meanwhile, the UK ordered it’s citizens to stay at home and also ordered the non-necessary businesses to close.  

Nikkei 225 finished 7.13% higher at 18092; the Shanghai Composite index closed 2.34% higher at 2722. The Singapore FTSE Straits Times is 5.20% higher at 2349. Hang Seng was 4.45% higher at 22663. The ASX 200 index managed to rebound from the 2012 lows and ended 4.15 higher at 4753.

European indices jumped on the opening. The German DAX is 5.21% higher at 9,181. CAC 40 index is 3.98% higher at 4,063, while the FTSE MIB in Milan is 4.51% higher at 16,265. In London, the FTSE 100 is 3.52% higher at 5,179.  

In commodities markets, crude oil price trading higher for the second day in a row. WTI crude oil is 5.61% higher at $24.70 while the Brent oil is 3.59% higher at $28.49 per barrel. 

The gold price is 2.39% higher at 1591. The gold price initial resistance stands at $1,703 the monthly high, while the first support stands at $1,451 the low from March 16 trading session. Silver (XAGUSD) price is higher, adding 5.4 at $13.90.    

Cryptocurrencies momentum is gaining upside momentum as the sell-off in stocks pause at least for today. Bitcoin (BTCUSD) price is 4.59% higher at $6,791, hitting the daily low at $6,355 and the daily high at $6,843.

Bitcoin’s technical outlook is bearish as the cryptocurrency trading below all the major daily moving averages, but the picture improves for the short term. The first support for BTCUSD stands now at $4,431 the low from March 14. On the other hand, immediate resistance stands at $6,843 today’s high. Strong resistance will be met at 10,495, the yearly top.

Ethereum is 4.18% higher, with capitalization at 15.59 billion. The first resistance for Ethereum stands at 144.05 the daily high, while the initial support stands at $102.00 the low from March 16. XRPUSD is 2.83% higher at 0.1636. Litecoin (LTCUSD) is 3.25% higher at 40.39. The crypto market capitalization stands now at $188.40 billion.

In the Lookout: Japan Leading Economic Index registered at 90.5 above expectations (90.3) in January 

Japan Jibun Bank Manufacturing PMI below expectations (47.6) in March: Actual (44.8) 

The Australia Manufacturing PMI came in at 50.1, topping the expectations of 50 in March. The Composite PMI dropped from 49 to 40.7. The Services PMI came in at 39.8 below the forecasts of 48.3. 

AUDUSD Daily Chart

Trading Perspective: In the foreign exchange markets, the Australian dollar is 2.15% higher at 0.5951 against the U.S. greenback. The Japanese Yen is higher against the US Dollar, the USDJPY is 0.77% lower at 110.35. The U.S. dollar index is 1.31% lower at 101.81. NZDUSD trades 1.99% higher at 0.5830.

EURJPY Rebound Stalls At the 100-Day Moving Average

EURJPY is trading higher for the fourth day in a row as the risk appetite returns to markets after the Fed announced that it was ready to provide all the necessary liquidity in order to combat the coronavirus impact. Other central banks and governments around the globe have also stepped in with monetary and fiscal stimulus. 

On the economic data, the Australian Manufacturing PMI came in at 50.1 above the expectations of 50 in March. The Australian Composite PMI dropped from 49 to 40.7, and the Services PMI came in at 39.8 below the expectations of 48.3.

In the European data, the German Markit Manufacturing PMI came in at 45.7 above the forecasts of 39.6 in March, while the PMI Composite registered at 37.2, below the forecasts of 40.6. The Services PMI came in at 34.5, below the forecasts of 42.3. The European Monetary Union Manufacturing PMI registered in at 44.8, topping the forecasts of 39 in March. 

On the technical side first resistance stands at 120.42 the 100-day moving average. More selling pressure will be met at 120.96 the high from March 3. 

On the flipside, immediate support for the pair stands at 119.14 the 50-day moving average at 119.92. The next level to watch is at 118.81 the daily low, which guards the 117.71 the low from March 23. 

EURJPY Daily Chart
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