News

Asia Roundup: Japanese yen trades marginally lower after mixed economic data, Asian markets in green, gold stabilizes above $1,570 mark - Friday, January 31, 2020

Posted at 31 January 2020 / Categories Market Roundups

Market Roundup

• Japan’s Tokyo core CPI stands at 0.7 pct vs 0.8 pct previous release (expected 0.8).
   
• Japan’s unemployment rate stands at 2.2 pct vs 2.3 pct expected.
   
• Japan’s prelim industrial production m/m stands at 1.3 pct vs -1.0 pct previous release (expected 0.7).
   
• Japan’s retail sales stands at -2.6 pct vs -2.1 pct previous release (expected -1.7).
   
• South Korea’s industrial production stands at 4.2 vs -0.2 previous release (expected 1.0).
   
• South Korea’s retail sales remain unchanged at 0.3 pct.
   
• South Korea’s service sector output m/m stands at -0.1 vs 1.4 pct previous release.
   
• Australia’s PPI stands at 0.3 pct vs 0.4 pct previous release.
   
• China’s manufacturing PMI stands at 50.0 vs 50.2 previous release.
   
• China’s non – manufacturing PMI stands at 54.1 vs 53.5 previous release.
   

Economic Data Ahead

• (0200 ET/0700 GMT) German retail sales.
   
• (0230 ET/0730 GMT) Swiss retail sales.
   
• (0230 ET/0730 GMT) Thailand Current account, trade balance.
   
• (0245 ET/0745 GMT) France CPI, HICP.
   
• (0300 ET/0800 GMT) Spain GDP, HICP.
   
• (0300 ET/0800 GMT) Taiwan GDP.
   
• (0400 ET/0900 GMT) Spain current account.
   
• (0430 ET/0930 GMT) BOE mortgage approvals, mortgage lending, consumer credit.
   
• (0500 ET/1000 GMT) Italy GDP; Euro zone GDP, CPI, core CPI.  

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 0.049% to 97.755.

EUR/USD: The euro trades marginally lower against U.S. dollar and currently trading around $1.1022 mark on Thursday. A sustained close above $1.1032 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 depreciates in early Asia after mixed economic data and currently trading around 109.02 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 rises on Friday and jumps above $1.31 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 after PPI as well as private sector credit data. The Pair made intraday high at $0.6729 and low at $0.6705 mark. A consistent close below $0.6721 requires for downside rally towards $0.6708, $0.6670 and $0.6605 mark     respectively. On the other side, a sustained close above $0.6721 will take the parity higher towards $0.6818, $0.6903, $0.6942, $0.7076 and $0.7122 levels respectively.

NZD/USD: The Kiwi falls noticeably against U.S. dollar and hits lowest level since Dec 02, 2019. The pair is currently trading around $0.6482 mark. A sustained close above $0.6546 requires for the upside rally. Alternatively, a consistent close below $0.6485 will take the parity down towards key supports around $0.6424, $0.6323, $0.6236 and $0.6196 levels respectively.

Equities Recap

Japan’s Nikkei was trading 1.01 pct higher at 23,209.50 points.

Australia’s S&P/ASX 200 was trading 0.19 pct higher at 7,021.55 points.

India’s NSE was trading 0.26 pct higher at 12,070.85 points and BSE sensex 0.37 pct higher at 41,072.43 points.

South Korea’s kospi was trading 0.27 pct lower at 2,143.58 points.

Hong Kong’s Hang seng was trading 0.28 pct higher at 26,524.50 points.

Taiwan’s TWII was trading 0.94 pct higher at 11,529.80 points.

China markets will remain close in observance of Spring Festival.

Commodities Recap

Gold trades flat at $1,572 mark on Friday. 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 rose on Friday. Brent crude futures were up by 94 cents to $58.26. The West Texas Intermediate contract was up by 95 cents to $53.08 a barrel.

Treasuries Recap

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, trades lower to  0.954 points, the yield on the long-term 15-year bond trades down to 1.045 points and the yield on short-term 2-year fell nearly 0.017 pct to 0.650 points.

The yield on the benchmark 10 - year JGB note, which moves inversely to its price, trades slightly down to -0.064 points, the yield on the long-term 30 - year fell 0.004 pct to 0.356 points and the yield on short-term 2 - year fell to -0.152 points.