Weak Data from China and Australia Pressures Asian Equities 

Nikolas Papas

Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).

Asian Stocks

Weak Data from China and Australia Pressures Asian Equities 

November 14, 2019

Asian equity indices ended mostly lower today as traders turn cautious on the lack of positive news on the trade talks front. China has agreed to buy $50 billion of farm products but rolling back tariffs and enforcement mechanisms are also reportedly still points of negotiation.

The Hang Seng index is 0.75% lower at 26,373. The Singapore FTSE Straits Times Index is 0.25% lower at 3,230 while the Shanghai Composite is 0.31% higher at 2,914. The ASX 200 in Australia trading 0.55% higher at 6,735. Nikkei 225 ended 0.76% lower at 23,141.

European indices started the day mixed, DAX trading 0.31% lower at 13,185, CAC40 is 0.02 per cent lower at 5,904, while the FTSE MIB in Milan is 0.29 per cent lower at 23,511. In London, FTSE 100 is trading 0.32% lower at 7,327. 

In commodities, WTI crude oil trades 0.70 per cent higher at $57.52 as global growth worries ease. Brent oil is trading 0.59% higher at $62.74 per barrel as oil world demand will be affected by the global slowdown. Gold trades higher at 1,465, as the short term momentum is bearish now after the price trades below the 50 and 100-day moving average. On the upside, resistance stands at 1,555.13 yearly high while support is at 1,448 the recent low.       

weak data
BTCUSD Daily Chart

In cryptocurrencies, Bitcoin’s (BTCUSD) momentum is bearish, the cryptocurrency trades slightly lower today at 8,665, hitting the daily low at 8,614 and the daily high at 8,780. Bitcoin’s short term momentum is negative now as the cryptocurrency trades above the 200-day moving average but below the 50-day moving average. First support for BTC stands now at $7,364 recent low, while the next support stands at the 7,300 round figure.

On the upside, resistance now stands at 9,925 recent high and then at 10,000 round figure. Ethereum (ETHUSD) trades lower at 184,76 with capitalisation now to 20.29 billion, and on the upside, the immediate resistance stands at 200 recent high while the support stands at 136 the low from May 6th. LTCUSD trades lower at 59.30. The crypto market capitalization now stands at $239.73 billion.

On the Lookout: France ILO Unemployment came in at 8.6% above expectations of 8.4% in 3Q.

The Japan Tertiary Industry Index (MoM) came in at 1.8% above forecasts of -0.6% in September. Japan Preliminary Q3 GDP came in at 0.1% QoQ vs. 0.2% expected. The Japan Gross Domestic Product Annualized came in at 0.2% below forecasts of 0.8% in 3Q.  

In China, weak data from the Industrial Production (YoY) came in at 4.7%, below expectations of 5.4% in October. China Retail Sales (YoY) came in at 7.2%, below expectations of 7.9% in October. 

Australia Employment Change s.a. came in at -19K below forecasts of 15K in October, Australia Participation Rate came in at 66% below expectations of 66.1% in October. The Australia Unemployment Rate s.a. matched expectations of 5.3% in October. 

weak data
AUDUSD Daily Chart

The central bank of China set the Yuan rate (USDCNH) at 7.0083 versus yesterday settlement at 7.0026.  

Trading Perspective: In forex markets, USD index trades 0.01 per cent lower at 98.31, the AUDUSD trades 0.574 per cent lower at 0.6798, while NZDUSD trades 0.23% lower at 0.6396.

GBPUSD trades 0.11% lower at 1.2862 as we are getting closer to the  Brexit deadline in January 31st. Major support now stands at 1.2578 recent low which if broken, might accelerate the slide further towards 1.20. On the upside, first resistance now stands at 1.3010 recent high while more offers will emerge at 1.3050 round figure.

In Pound futures markets, open interest increased by 249 contracts, volume increased by around 13.600 contracts.

EURUSD trades 0.04% higher at 1.1011 as the pair’s momentum is neutral. Immediate resistance for the common currency stands at 1.1172 recent high. On the downside, first support stands at 1.1016 today’s low and then at 1.1003.

In euro futures markets, open interest decreased by 2,400 contracts, the volume increased by around 22.100 futures contracts.

USDJPY is trading 0.15% lower at 108.65 having hit the daily low at 108.62 and the daily high at 108.85. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the USDJPY now stands at 109.06 recent high.

In Yen futures markets, open interest increased by 1,200 contracts, volume increased by around 18,000 futures contracts.

USDCAD is trading 0.09% higher at 1.3260 the pair will find support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the upside, first resistance now stands at the 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.  

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