Asia Markets Update On January 21st, 2020

Asia Markets Update On January 21st, 2020

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Japanese Yen strengthens as BOJ keeps policy rate unchanged, Asian markets in red, Gold noticeably up - Tuesday, January 21, 2020.

Market Roundup

  • BOJ keeps policy rate unchanged at -0.10 pct.
  • South Korea’s PPI m/m stands at 0.3 pct vs -0.1 pct previous release.
  • South Korea’s PPI y/y stands at 0.7 pct vs -0.1 pct previous release.

Economic Data Ahead

  • (0200 ET/0700 GMT) Swiss trade balance.
  • (0300 ET/0800 GMT) Taiwan GDP.
  • (0330 ET/0830 GMT) Hong Kong CPI.
  • (0400 ET/0900 GMT) Spain Trade balance.
  • (0430 ET/0930 GMT) UK Claimant count change, unemployment rate.
  • (0500 ET/1000 GMT) German ZEW current conditions, economic sentiments.

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 0.03% to 97.33.

EUR/USD: The euro trades flat against U.S. dollar and currently trading $1.1096 mark on Tuesday. A sustained close above $1.1096 will drag the parity higher towards key resistances around $1.1142, $1.1390, $1.1472, $1.1550, $1.1620 and $1.1820 marks respectively. On the other hand, a consistent close below $1.1076 will drag the parity down towards key supports around $1.1017, $1.0919 and $1.0852 levels respectively.

USD/JPY: The Japanese yen appreciates against U.S. dollar after BOJ’s policy rate decision. The pair is currently trading around 109.96 mark. A sustained close above 110.18 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 109.89 will drag the parity down towards key support around 108.40, 106.90 and 104.20 marks respectively.

GBP/USD: The Pound trades flat against U.S. dollar ahead of U.K.’s job data. The pair is currently hovers around 1.30 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 $1.3045, $1.3335, $1.3422 and $1.3515 levels respectively.

AUD/USD: The Aussie falls gradually against U.S. dollar and stabilizes below $0.69 mark. Pair made intraday high at $0.6886 and low at $0.6853 mark. A consistent close below $0.6872 requires for downside rally towards $0.6838 and $0.6754 mark respectively. On the other side, a sustained close above $0.6903 will take the parity higher towards $0.6942, $0.7076 and $0.7122 levels respectively.

NZD/USD: The Kiwi remains almost unchanged on Tuesday and consolidates around $0.6600 mark. The pair is currently trading around $0.6604 mark. A sustained close above $0.6646 requires for the upside rally. Alternatively, a consistent close below $0.6590 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 0.99 pct lower at 23,844.50 points.
  • Australia’s S&P/ASX 200 was trading 0.35 pct lower at 7,054.10 points.
  • Hong kong’s Hang seng was trading 2.36 pct lower at 28,117.00 points.
  • South Korea’s Kospi was trading 0.84 pct lower at 2,243.95 points.
  • India’s NSE was trading 0.04 pct lower at 12,219.25 points and BSE sensex 0.08 pct lower at 41,499.57 points.

 

Commodities Recap

  • Gold hits fresh 2 – week high at $1,568 mark. A sustained close above $1,574 requires for the upside rally. On the other side, a consistent close below $1,546 will drag the parity down towards key supports around $1,530, $1,511, $1,490, $1,472 and $1,458 mark respectively. On the top side, key resistances are seen at $1,574, $1,597 and $1,611 mark respectively.
  • Oil prices trade marginally lower on Tuesday. Brent crude futures were down by 30 cents to $64.83. The West Texas Intermediate contract was down by 20 cents at $58.38 a barrel.

Treasuries Recap

  • The yield on Australia’s benchmark 10-year note, which moves inversely to its price, trades lower to  1.161 points, the yield on the long-term 15-year bond trades down to 1.266 points and the yield on short-term 2-year fell nearly 0.004 pct to 0.756 points.
  • The yield on the benchmark 10 - year JGB note, which moves inversely to its price, trades slightly down to -0.003 points, the yield on the long-term 30 - year fell -0.024 pct to 0.450 points and the yield on short-term 2 - year fell to -0.125 points.