Visible Kospi Alert
The Kospi fell as the outbreak of caution ahead of the publication of the Chinese manufacturing data on hours of 8:45 pm. China manufacturing index fell from 50.4 predictable becomes 50.2 for October. If the manufacturing data confirms the threat of a slowing Chinese economy then this could restore investor anxiety to the outlook for the world economy, especially in the early weeks after data showed the return of recession in Japan. Kospi futures down 0.56% and is now trading at 249.10.
Investors also appear concerned with the impact of continued weakness in the yen against the South Korean exporters.
South Korean exporters competing with Japanese exporters in the international market and the movement of the exchange rate will also affect the company’s ability to sell its products. South Korean Finance Minister yesterday also express anxiety over the risk posed by a weaker yen in the current local economic recovery is slightly weaker than anticipated.
Technically, the index in the trading session today, Thursday (20/11) likely to weaken, test negative trends, the impact of Wall Street. On the bearish engulfing formation M15 chart gives an opportunity for the index to move downside. However, the volume is likely to increase, an early indication of a bullish index. In addition, RSI, on the M15 chart, is in the oversold area, cue upside.
It is estimated, the index test in advance the level of Support 247.50 and 245.10. If it fails at 249.45, then the next index is expected to tend to retest the 250.50 resistance level and continue until the area is likely to be 252.90.
Yen Still Weakens Against Dollar
Trading foreign exchange on Thursday (20/11), observed yen weakened against the greenback after a report Japan’s trade deficit narrowed.
During the Asian trading session, the pair USDJPY rose 118.23% to 0:25.
The yen weakened against the US dollar observed when a comment “dovish” from the Governor of the Federal Reserve become the main factor driving the US dollar strengthened against other major currencies.
Meanwhile, this morning was trying to erase the yen weakened against the greenback, supported by the improvement in the condition of Japan’s trade deficit, which according to a report released by the Ministry of Finance of Japan has shown that Japan’s trade deficit has narrowed, the seasonally adjusted -0.98T , of -1.07T in the previous month.
Meanwhile, as for the other reports that followed today by the Japanese Manufacturing PMI data scheduled to be released at 08:35 pm Jakarta time. Survey of economists have estimated that the Japanese Manufacturing PMI to increase to 52.7.
Technically, today’s trading session on Thursday (20/11), the dollar yen pair likely to move in a positive trend.
A stronger yen is mainly expected to immediately reexamine the minimum resistance at 120.50 and 122.90 maximum. Meanwhile, if the yen is not able to break and stays below 118.17 then another alternative scenario, namely Yen likely to test support in 117.10 and 115.50 area.
Gold Slips For the Referendum Fading Support
Gold fell on Wednesday as a report that shows the loss of momentum of support for a referendum to ask the Swiss central bank has 20% of its reserves in gold.
According to reports from the Daily Mail, only about 38% of those surveyed who chose the central bank to increase its gold reserves, while Bloomberg reports that the chances are about 47% provide support for it. Referendum, which is scheduled on November 30, should have the support of more than 50% to pass the policy.
However, the precious metal managed to reduce some losses after the release of the minutes of the last meeting of the Federal Open Market Committee.
Gold for December delivery slipped $ 3.20 to settle at $ 1,193.90 / onz. In electronic trading, gold earlier touched its lowest level at $ 1,173.90 / onz before it bounces.
Minutes of the last Fed indicated that policy makers about how to bring the interest rate hike in the foreseeable future is likely to be present in the next few years.
On Tuesday, gold settled higher at 1.2%, aided by lower dollar makes dollar-denominated commodities become cheaper for holders of other currencies.
Gold fell from a peak in 2011, although it is expected to rise at some point, writes MarketWatch columnist Matthew Lynn. But that will not happen if the political forces in Switzerland or Russia does not give impetus to it, according to his opinion.
Technically, gold at today’s trading session on Thursday (20/11) potentially bearish, tested negative trend back, but prone to reversal. The RSI indicator is likely to re-test support channel and towards the oversold area, but the Bollinger Bands which began to widen, thus giving impetus to gold to the upside.
It is estimated that the price of gold immediately prior to test support at least in the area of 1175.33 and re-test the maximum level of 1170.00. However, if the price of gold is able to break and hold above 1179.20 then estimated the price of gold has the potential to test the 1183.90 and 1188.00 Resistance.
