Asia Markets Update on December 27th, 2019

Asia Markets Update on December 27th, 2019

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Japanese Yen rises on mixed economic data, most Asian markets in green, Gold touches $1,513 Mark in Asian hours - Friday, December 27, 2019.

Market Roundup

  • Japan’s Tokyo core CPI y/y stands at 0.8 pct vs 0.6 pct previous release (expected 0.6).
  • Japan’s unemployment rate stands at 2.2 pct vs 2.4 pct previous release (expected 2.4).
  • Japan’s prelim industrial production m/m stands at -0.9 pct vs -4.5 pct previous release (expected -1.1).
  • Japan’s retail sales stands at -2.1 pct vs -7.0 pct previous release (expected -1.7 pct).
  • China’s industrial profit y/y stands at 5.4 pct vs -9.9 pct previous release.
  • PBOC cut yuan fixing by 78 pips to 6.9879 per U.S. dollar on Friday vs 6.9801 one day earlier.

Economic Data Ahead

  • (0230 ET/0730 GMT) Thailand’s forex reserves and currency swaps.
  • (0300 ET/0800 GMT) Spain retail sales.
  • (0400 ET/0900 GMT) Swiss ZEW expectations.
  • (0600 ET/1100 GMT) Brazil IGP – M inflation index.
  • (0700 ET/1200 GMT) South Africa’s trade balance.

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 down 0.11% to 97.43.

EUR/USD: The euro strengthens against U.S. dollar and stabilizes above $1.11 mark. The pair is currently trading around $1.1120 mark. A sustained close above $1.1096 will drag the parity higher towards key resistances around $1.1220, $1.1390, $1.1472, $1.1550, $1.1620 and $1.1820 marks respectively. On the other hand, a consistent close below $1.1075 will drag the parity down towards key supports around $1.1050, $1.1017, $1.0919 and $1.0852 levels respectively.

USD/JPY: The Japanese yen trades marginally higher after Japan’s mixed economic data. The pair is currently trading around 109.49 mark. A sustained close above 109.62 is required to take the parity higher towards key resistances around 110.50, 112.60 and 113.98 marks respectively. Alternatively, a daily close below 109.31 will drag the parity down towards key support around 108.40, 106.90 and 104.20 marks respectively.

GBP/USD: The Pound rises gradually against U.S. dollar and currently trading around $1.2995 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 $1.3050, $1.3134, $1.3335, $1.3422 and $1.3515 levels respectively.

AUD/USD: The Aussie rises remarkably against U.S. dollar and touches $0.6955 mark. Pair made intraday high at $0.6955 and low at $0.6941 mark. A consistent close below $0.6873 requires for downside rally towards $0.6838 and $0.6704 mark respectively. On the other side, a sustained close above $0.6945 will take the parity higher towards $0.6977, $0.7076 and $0.7122 levels respectively.

NZD/USD: The Kiwi appreciates on Friday and touches $0.6681 mark. The pair is currently trading flat around $0.6671 mark. A sustained close above $0.6669 requires for the upside rally. Alternatively, a consistent close below $0.6544 will take the parity down towards key supports around $0.6502, $0.6424, $0.6323, $0.6236 and $0.6196 levels respectively.

Equities Recap

  • Japan’s Nikkei was trading 0.03 pct lower at 23,917.55 points.
  • Australia’s S&P/ASX200 was trading 0.30 pct higher at 6,815.20 points.
  • Hong Kong’s Hang seng was trading 1.25 pct higher at 28,214.00 points.
  • South Korea’s Kospi was trading 0.70 pct higher at 2,212.81 points.
  • Taiwan’s TWII was trading 0.70 pct higher at 12,085.45 points.
  • India’s NSE was trading 0.46 pct higher at 12,185.50 points and BSE sensex points 0.45 pct higher at 41,356.40 points.

Commodities Recap

  • Gold rises remarkably on Friday. A sustained close above $1,510 requires for the upside rally. On the other side, a consistent close below $1,510 will drag the parity down towards key supports around $1,490, $1,472, $1,458, $1,440, $1,422 and $1,407 mark respectively. On the top side, key resistances are seen at $1,517, $1,532 and $1,558 mark respectively.
  • Oil price rose drastically on Friday and hits fresh 3 – month high. Brent crude was up 13 cents at $68.05 a barrel. WTI was up 14 cents at $61.81 a barrel.

Treasuries Recap

  • The yield on Australia’s benchmark 10-year note, which moves inversely to its price, trades higher to  1.310 percent, the yield on the long-term 15-year bond trades flat to 1.419 percent and the yield on short-term 2-year rose nearly 0.01 pct to 0.911 percent.
  • The yield on the benchmark 10 - year JGB note, which moves inversely to its price, trades slightly down to -0.011 points, the yield on the long-term 30 - year fall 0.006 pct to 0.431 points and the yield on short-term 2 - year fell to -0.122 points.

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