Asia roundup: Aussie gains on China's better-than-expected trade data, Gold firms at 7-year peak on pandemic-led economic shock, Asian shares rally - Tuesday, April 14th, 2020
Economic Data Ahead
Key Events Ahead
DXY: The dollar index eased on the back of the U.S. Federal Reserve’s massive new lending programme. The greenback against a basket of currencies traded 0.2 percent down at 99.29, having touched a low of 99.14 on Monday, its lowest since Apr. 1.
EUR/USD: The euro rose, hovering towards an 11-day peak hit in the prior session, as the number of new cases slowed to 3,153 from a previous 4,092 in Italy, its lowest since April 7. The European currency traded 0.2 percent up at 1.0928, having touched a high of 1.0967 on Monday, its highest since April 2. Investors’ attention will remain on the U.S. import price index and export price index, amid a lack of data from the Eurozone economies. Immediate resistance is located at 1.0968, a break above targets 1.0995. On the downside, support is seen at 1.0895 (10-DMA), a break below could drag it below 1.0865.
USD/JPY: The dollar declined after a Washington-based watchdog group stated that a steep economic downturn and massive rescue spending will nearly quadruple the fiscal 2020 U.S. budget deficit to a record $3.8 trillion, a staggering 18.7 percent of U.S. economic output. The major was trading 0.05 percent down at 107.71, having hit a low of 107.50 on Monday, its lowest since Apr. 2. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. import price index and export price index. Immediate resistance is located at 108.22 (10-DMA), a break above targets 108.42 (5-DMA). On the downside, support is seen at 107.15, a break below could take it near at 106.92.
GBP/USD: Sterling rallied to a 1-month peak on news that Prime Minister Boris Johnson has recovered from coronavirus and greenback’s weakens across the board. The major traded 0.4 percent up at 1.2549, having hit a high of 1.2574 earlier, it’s highest since March 13. Investors’ attention will remain on the geopolitical developments ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2624, a break above could take it near 1.2679. On the downside, support is seen at 1.2425 (5-DMA), a break below targets 1.2379. Against the euro, the pound was trading 0.2 percent up at 87.01 pence, having hit a high of 87.00 earlier, it’s highest since Mar. 10.
AUD/USD: The Australian dollar surged to a 1-month high after China’s trade data painted a less gloomy picture than markets had feared. China’s yuan-denominated exports in March fell a modest 3.5 percent from the same period a year earlier, and imports rose 2.4 percent customs data showed. The Aussie trades 0.4 percent up at 0.6407, having hit a high of 0.6432 earlier, it’s highest since Mar. 12. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.6483, a break above could take it near 0.6504. On the downside, support is seen at 0.6340, a break below targets 0.6292.
Asian shares rallied after China’s trade data came in better than expected, while few nations tried to restart their economy by partly lifting restrictions aimed at containing the coronavirus outbreak.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.3 percent.
Tokyo's Nikkei rallied 3.1 percent to 19,638.81 points, Australia's S&P/ASX 200 index gained 1.9 percent to 5,488.10 points and South Korea's KOSPI surged 1.7 percent to 1,857.08 points.
Shanghai composite index rose 1.6 percent to 2,827.28 points, while CSI 300 index traded 1.9 percent up at 3,825.70 points
Hong Kong’s Hang Seng traded 0.7 percent higher at 24,457.69 points. Taiwan shares added 2.3 percent to 10,332.94 points.
Crude oil prices surged after the main U.S. energy forecasting agency predicted shale output in the world’s biggest crude producer would fall by the most on record in April, adding to cuts from other major producers. International benchmark Brent crude was trading 0.6 percent higher at $32.03 per barrel by 0552 GMT, having hit a high of $36.37 on Thursday, its highest since March 11. U.S. West Texas Intermediate was trading 1.1 percent up at $22.60 a barrel, after falling as low as $22.07 on Monday, its lowest since Apr. 2.
Gold prices rallied to a more than 7-year high on rising fears of a steeper economic downturn and amid massive liquidity measures by global central banks. Spot gold rose 0.1 percent to $1,714.01 per ounce by 0555 GMT, having touched a high of $1,725.33 earlier, its highest since Nov. 2012. U.S. gold futures rose 1.1 percent to $1,781.20 an ounce.
The Japanese government bond prices edged lower, with the benchmark 10-year JGB futures dipping 0.04 point to 152.22. The 10-year JGB yield edged up 0.5 basis point to 0.005 percent, while the 20-year yield rose 1.5 basis points to 0.340 percent. The 30-year and 40-year yield also rose 1 basis point each to 0.455 percent and 0.475 percent respectively.
Source: FxWire Pro - Media Round Ups