Asia Markets Update On January 30th, 2020

Asia Markets Update On January 30th, 2020

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Aussie trades marginally lower despite robust export – import price index data, Asian markets drastically down, Gold hovers around $1,580 Mark - Thursday, January 30, 2020.

Market Roundup

  • Australia’s export price index stands at -5.2 pct vs 1.3 pct previous release (expected -5.4).
  • Australia’s import price index data stands at 0.7 pct vs 0.4 pct previous release (expected 0.0).
  • South Korea’s manufacturing BSI index stands at 79 vs 75 previous release (expected 74).
  • Kiwi trade balance stands at 547m vs -791M previous release (expected 100M).

Economic Data Ahead

  • (0200 ET/0700 GMT) German import price index.
  • (0300 ET/0800 GMT) Swiss KOF leading indicator.
  • (0330 ET/0830 GMT) Hong Kong trade balance.
  • (0355 ET/0855 GMT) German job data.
  • (0400 ET/0900 GMT) Italy unemployment rate.
  • (0430 ET/0930 GMT) UK consumer credit, money supply, mortgage lending.
  • (0430 ET/0930 GMT) South Africa PPI.
  • (0500 ET/1000 GMT) Euro zone business climate, consumer confidence, unemployment rate.
  • (0600 ET/1100 GMT) Brazil IGP – M inflation index.
  • (0630 ET/1130 GMT) Spain business confidence.

Key Events Ahead

  • (0200 ET/0700 GMT) BOJ Deputy Governor Amamiya’s speech.
  • (0300 ET/0800 GMT) ECB’s Enria’s speech.
  • (0700 ET/1200 GMT) BOE interest rate decision.

FX Recap

USD: The U.S. dollar index that tracks the greenback against a basket of other currencies inched up 0.06% to 97.875.

EUR/USD: The euro trades flat against U.S. dollar and stabilizes above $1.1000 mark on Thursday. 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 $1.1009 will drag the parity down towards key supports around $1.0970, $1.0919 and $1.0852 levels respectively.

USD/JPY: The Japanese yen trades marginally higher on Thursday and currently trading around 108.90 mark. A sustained close above 109.14 is required to take the parity higher towards key resistances around 109.65, 110.20, 112.60 and 113.98 marks respectively. Alternatively, a daily close below 108.89 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 flat against U.S. dollar ahead of BOE’s interest rate decision. The pair is currently consolidates around $1.3000 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 marginally lower despite robust export – import price index data. The Pair made intraday high at $0.6755 and low at $0.6731 mark. A consistent close below $0.6753 requires for downside rally towards $0.6708 and $0.6670 mark respectively. On the other side, a sustained close above $0.6762 will take the parity higher towards $0.6818, $0.6903, $0.6942, $0.7076 and $0.7122 levels respectively.

NZD/USD: The Kiwi depreciates in early Asia robust trade balance data. The pair is currently trading around $0.6508 mark. A sustained close above $0.6526 requires for the upside rally. Alternatively, a consistent close below $0.6526 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 1.97 pct lower at 22,933.50 points.
  • Australia’s S&P/ASX 200 was trading 0.33 pct lower at 7,008.50 points.
  • India’s NSE was trading 0.57 pct lower at 12,060.85 points and BSE sensex 0.56 pct lower at 40,969.43 points.
  • South Korea’s kospi was trading 1.80 pct lower at 2,146.06 points.
  • Hong Kong’s Hang seng was trading 2.00 pct lower at 26,600.50 points.
  • Taiwan’s TWII was trading 5.60 pct lower at 11,440.80 points.
  • China markets will remain close in observance of Spring Festival.
  • Commodities RecapGold hovers around $1,580 mark on Thursday. A sustained close above $1,581 requires for the upside rally. On the other side, a consistent close below $1,567 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 price depreciates on Thursday. Brent crude futures were down by 60 cents to $58.31. The West Texas Intermediate contract was down by 48 cents to $52.84 a barrel.

Treasuries Recap

  • The yield on Australia’s benchmark 10-year note, which moves inversely to its price, trades lower to  0.964 points, the yield on the long-term 15-year bond trades down to 1.055 points and the yield on short-term 2-year fell nearly 0.006 pct to 0.658 points.
  • The yield on the benchmark 10 - year JGB note, which moves inversely to its price, trades slightly down to -0.055 points, the yield on the long-term 30 - year fell 0.028 pct to 0.344 points and the yield on short-term 2 - year fell to -0.142 points.

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