News

Asia Roundup: Aussie falls noticeably in early Asia; Asian markets in red; gold spikes up in opening hours – Monday, January 27, 2020

Market Roundup

  • Gold and silver spikes up in opening hours on Monday; Crude crashes.
     
  • Australia, Hong Kong, Taiwan, China, Singapore and South Korean markets will remain close.

Economic Data Ahead

  • (0200 ET/0700 GMT) German GFK consumer climate.
     
  • (0400 ET/0900 GMT) German business expectations, current assessment, IFO business climate index.
     
  • (0430 ET/0930 GMT) U.K. gross mortgage approvals.
     
  • (0730 ET/1230 GMT) Brazil current account, FDI.

Key Events Ahead

  • No key events scheduled for the day.

FX Recap

USD: The U.S. dollar index that tracks the greenback against a basket of other currencies inched up 0.21% to 97.68.

EUR/USD: The euro marginally higher against U.S. dollar and currently trading $1.1027 mark on Friday. A sustained close above $1.1022 will drag the parity higher towards key resistances around $1.1062, $1.1142, $1.1390, $1.1472, $1.1550, $1.1620 and $1.1820 marks respectively. On the other hand, a consistent close below $1.1023 will drag the parity down towards key supports around $1.0970, $1.0919 and $1.0852 levels respectively.

USD/JPY: The pair opens gap down on Monday and hovers around 109.00 mark. The pair is currently trading around 109.07 mark. A sustained close above 109.24 is required to take the parity higher towards key resistances around 110.20, 112.60 and 113.98 marks respectively. Alternatively, a daily close below 109.24 will drag the parity down towards key support around 108.72, 108.40, 106.90 and 104.20 marks respectively.

GBP/USD: The Pound trades marginally lower against U.S. dollar and stabilizes above $1.31 mark. The pair is currently stabilizes below $1.3100 mark. A sustained close below $1.2935 requires for dragging the parity down towards key support around $1.2820, $1.2644 and $1.2352 mark respectively. On the other side, key resistances are seen at $1.3157, $1.3335, $1.3422 and $1.3515 levels respectively.

AUD/USD: The Aussie trades noticeably down against U.S. dollar and currently trading around $0.6805 mark. Pair made intraday high at $0.6818 and low at $0.6801 mark. A consistent close below $0.6824 requires for downside rally towards $0.6800, $0.6754 and $0.6670 mark respectively. On the other side, a sustained close above $0.6846 will take the parity higher towards $0.6903, $0.6942, $0.7076 and $0.7122 levels respectively.

NZD/USD: The Kiwi falls in early Asia and slips below $0.66 mark. The pair is currently trading around $0.6577 mark. A sustained close above $0.6615 requires for the upside rally. Alternatively, a consistent close below $0.6590 will take the parity down towards key supports around $0.6554, $0.6502, $0.6424, $0.6323, $0.6236 and $0.6196 levels respectively.

Equities Recap

Japan’s Nikkei was trading 1.83 pct lower at 23,390.50 points.

India’s NSE was trading 0.45 pct lower at 12,192.85 points and BSE sensex 0.40 pct lower at 41,432.43 points.

Australia, Hong Kong, Taiwan, China, Singapore and South Korean markets will remain close.

Commodities Recap

Gold spikes up in opening hours on Monday and touches $1,588 mark. A sustained close above $1,571 requires for the upside rally. On the other side, a consistent close below $1,571 will drag the parity down towards key supports around $1,547, $1,530, $1,511, $1,490, $1,472 and $1,458 mark respectively. On the top side, key resistances are seen at $1,588, $1,597 and $1,611 mark respectively.

Oil starts a new week on a lower note. Brent crude futures were down by 2.2 pct to $59.34. The West Texas Intermediate contract was down by 2.4 pct to $52.89 a barrel.

Treasuries Recap

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, trades lower to  1.072 points, the yield on the long-term 15-year bond trades down to 1.165 points and the yield on short-term 2-year fell nearly 0.016 pct to 0.741 points.

The yield on the benchmark 10 – year JGB note, which moves inversely to its price, trades slightly down to -0.043 points, the yield on the long-term 30 – year fell -0.033 pct to 0.374 points and the yield on short-term 2 – year fell to -0.138 points.


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