Asian Market Brief, Friday 9 April 2021
The US dollar appears to have risen at the start of the session on Friday (9/4), after weakening again yesterday, due to the increased US jobless claims report, triggering opportunities for long-term stimulus from the US Federal Reserve.
Amid massive monetary and fiscal stimulus to restore the US economy, the US dollar was under pressure due to concerns over the country's long-term debt. But hopes of a faster economic recovery than any other major country in the world are helping market participants maintain interest in the US dollar.
China's annual CPI & PPI report released better than expected at 08:30 WIB, could impact on the Hang Seng index and the Australian dollar, where China is the largest consumer of Australian export products. The market is also waiting for the German Trade Balance and Industrial Production report at 13:00 WIB.
The sale of the US dollar amid rising US jobless claims triggered an increase in the gold price of $ 17.91 to $ 17553.31 at the end of trading on Thursday. In the Asian session (9/4), gold prices still have the potential to be bought to test the $ 1760 resistance as long as they hold above the $ 1750 level. If it drops below this level, the gold price has a chance to sell to test the support at $ 1746. Potential price range in Asian session: $ 1746 - $ 1760.
Buoyed by increased fuel demand optimism amid hopes for a global economic recovery that has propped up oil prices by $ 0.23 to $ 59.78 at the end of Thursday's session. In the Asian session (9/4), oil prices could potentially be bought to test the $ 60.35 resistance as long as they hold above the $ 59.30 level. If it drops below this level, the oil price could potentially sell to test the $ 59.00 support. Potential price range in Asian session: $ 59.00 - $ 60.35.
The weakness of the US dollar due to the rising US jobless claims data has triggered a 45pip increase in EURUSD at the level of 1.1915 on Thursday trading. In the Asian session (9/4), EURUSD has the potential to be bought to test the 1.1945 resistance if the economic data on German industrial production and trade balance at 13:00 WIB is released better than expected. If it drops below the 1.1900 level, EURUSD has a chance to be sold to test the 1.1880 support. Potential price ranges in Asian session: 1.1880 - 1.1945.
Amid the UK medical regulator on Wednesday issued a temporary ban on the AstraZeneca vaccine for the under 30 age group and the weakening of the US dollar due to high jobless claims data triggered a 4 pip drop in GBPUSD at 1.3733 at the end of Thursday's trading session. In the Asian session (9/4), GBPUSD has the potential to be bought to test the 1.3780 resistance if the weak US dollar sentiment continues and optimism for the AstraZeneca vaccine returns today. If it drops below 1.3715, GBPUSD has the opportunity to be sold to test the support at 1.3700. Potential price range in Asian session: 1.3700 - 1.3780.
Triggered by the selling action of the US dollar amid high US jobless claims, the USDJPY dropped 57pip on Thursday at the level of 109.25. In the Asian session (9/4), USDJPY has the potential to be sold to test the 109.00 support as long as the price holds below the 109.40 level. If it rises above these levels, USDJPY would be potential to buy to test resistance at 109.60. Potential price range in Asian session: 109.00 - 109.60.
The high commodity prices for iron ore and copper as well as the weak US dollar that triggered the gains triggered the AUDUSD to rise by 42pip at 0.7652 at the end of trading on Thursday. In the Asian session (9/4), AUDUSD has the potential to be bought to test 0.7680 resistance if the RBA financial stability review and China's CPI & PPI data at 08:30 WIB are positive. If it drops below the level 0.7635. AUDUSD has a chance to sell to test the support at 0.7620. Potential price range in Asian session: 0.7620 - 0.7680.
Supported by better-than-expected Current Account and Consumer Confidence and the weakening US dollar that propped Wall Street, the Nikkei index ended down 45 points at 29375 at the end of Thursday's session. In the Asian session (9/4), the Nikkei index has the potential to be bought to test the resistance of 30200 as long as the price holds above the 29860 level. If it drops below this level, the Nikkei index has a chance to sell to test support at 29735. Potential price range in the Asian session: 29735 - 30200.
The Price of Gold Is Still Shadowed by Market Interest in US Dollar Assets
Gold prices turned down at the start of the session on Friday (9/4), as market players returned to interest in the US dollar amid hopes that stimulus in the US would be able to help the US economy recover faster than other developed countries.
Trading Opportunity: If it drops below $ 1750, gold price could potentially sell to test the $ 1741 - $ 1746 support.
Alternative: rising above the $ 1760 level, the price of gold is likely to be bought to test the $ 1770 - $ 1775 range.
- Resistance Level: 1760 - 1770 - 1775
- Support Level: 1750 - 1746 - 1741
The Nikkei Index Down, Weighted By The Hang Seng Index's Weakness
The Nikkei Index fell earlier in the session on Friday (9/4), weighed down by a sell-off on the Hang Seng after news of the US blacklisting 7 Chinese super computer companies, cutting market interest in Asian stocks. Tokyo's rise in coronavirus cases also weighed on the Nikkei index today, as the Japanese government prepares to impose restrictions on the region.
Trading Opportunities: If it drops below 29735, Nikkei index would be potential to sell, testing support at 29570 - 29625.
Alternative: If it rises above the 29955 level, the Nikkei index has the potential to buy, testing the range 30065 - 30200.
- Resistance Level: 29955 - 30065 - 30200
- Support Level: 29735 - 29625 - 29570
GBPUSD has the opportunity to move down, aiming for support at 1.3700
GBPUSD has the opportunity to move down in the short term amid growing concerns over the UK's dependence on the AstraZeneca vaccine, which is currently concerned about its safety and supply issues. However, the decline in GBPUSD has limited opportunities amid the weak outlook for the US dollar. Later today, GBPUSD traders will look for catalysts from the UK's Halifax HPI data released at 14:30 WIB and the release of the UK central bank's quarterly bulletin at 18:00 WIB.
Movement Potential : GBPUSD has the opportunity to sell in the short term as long as the price moves below the 1.3780 level, because it has the potential to decline to test the support level at 1.3700.
Alternative : However, if it moves up to break above the 1.3780 level, GBPUSD has the opportunityis bought as it has the potential to go up further targeting the resistance at 1.3830.
- Support levels: 1.3700 - 1.3650 - 1.3570
- Resistance levels: 1.3780 - 1.3830 - 1.3900
EURUSD has the opportunity to move up while moving above the 1.1860 level
EURUSD has the opportunity to move up in the short term amid a weakening outlook for the US dollar after the release of pessimistic US jobless claims data and a dovish statement from Fed Chair Jerome Powell last night. Furthermore, today EURUSD traders will pay attention to German economic data to catalyze further movements such as Industrial Production and Trade Balance which will be released simultaneously at 13:00 WIB.
Movement Potential : EURUSD has the opportunity to be bought in the short term as long as the price moves above the support level at 1.1860 because it has the potential to rise aiming the resistance at 1.1970.
Alternative : However, if it moves down to break below the 1.1860 level, there is a chance to sellaiming for the next support at 1.1800.
- Support levels: 1.1860 - 1.1800 - 1.1730
- Resistance levels: 1.1970 - 1.2030 - 1.2100
Oil Price Potentially Rise, Testing Resistance at 60.20
Oil prices have the opportunity to move up in the short term amid reports that Saudi Arabia said its OPEC + allies could change direction of production policy quickly if needed. Another sentiment that has the opportunity to support the increase in oil prices is the outlook for the weakening of the US dollar. Later today oil traders will be looking for a catalyst from the release of US rig activity data reported by Baker Hughes at 00:00 WIB / Saturday.
Potential Movement : The oil price has the opportunity to buy in the short term to test the resistance level at 60.20, a break above this level would be potential to further target the resistance at 60.80.
Alternative : However, if it moves down to break below the level of 59.20, it will have a chance to sell because it has the potential to fall further targeting the next support at 58.60.
- Support levels: 59.20 - 58.60 - 57.90
- Resistance levels: 60. 20 - 60.80 - 61.50