Hang Seng Trying To Optimistic
Hang Seng recorded a thin reinforcement as widespread optimism that Beijing will continue its policy of reform in order to maintain the sustainability of China’s economic growth momentum.
On weekends, local Chinese media reported that China would undertake employment-listrikan sector reform in early 2015. China’s state council website also hinted that Beijing loosened the rules for foreign banking activity.
On the website says that the government will not require foreign banks to transfer a number of operational funds to his Chinese business unit. Hang Seng rose 0.1% and is now trading at 23430.
However, investors seem to appear reluctant to push up terlau index higher as the invisibility of profit-taking ahead of the Christmas holidays and the end of the year. Most investors seem to want to secure the advantages of a strong rally since last week before getting on vacation. Energy sector and related industries look also weighed on the performance of the index as the back drop in world oil prices. Investors worried about the outlook for the energy sector revenues and other related industries with visible oil prices back towards the low level of 5 years. China’s leading oil producer, CNOOC and Petrochina respectively decreased by 1.13% and 0.57% at the beginning of the Asian session.
Technically, the index on the trading session today, Tuesday (23/12) likely to weaken, test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume tends to rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 23350 and 23300. If it fails at 23 413, then the next index is expected to tend to retest the resistance level of 23450 and continued until the possibility of being in the 23500 area.
Yen Exchange Rate Weakens In America Session
US Dollar exchange rate on Monday night rose against major currencies Japanese Yen. Opened at 119.51 in early trading (0000 GMT), the currency has urged other major currencies around + 38 pips or about + 0:32% and the value of rolling seemed to be in the range of 119.90.
The market seems not respond positively to the Yen, a report from the National Association of Realtors who announced their weak performance in the housing sector in the United States. Existing Home Sales reported indicator dropped to 4.93M from 5.25M, lower than economists estimated the suspect only be dropped to 5.21M.
Yen exchange rate appears to be moving down the USDJPY pair face a banking holiday in Japan, which will commemorate the birthday of the Emperor of Japan.
Analysts suggested daily forex fundamental analysis US Dollar exchange rate normal range Dollar-Yen on Monday is expected to have the support level at 119.01 and resistance level at 119.81.
Technically, today’s trading session on Tuesday (23/12), the dollar yen pair likely to move in a positive trend.
A stronger yen is mainly expected to immediately re-examine the minimum resistance at 122.50 and 125.10 maximum. Meanwhile, if the Yen was able to break and stays below 120.07, the other alternative scenario that Yen likely to test support in 119.10 and 117.07 area.
Gold Drops Into 2 Week Low Level For High Volatility
Gold futures fell to their lowest level in more than two weeks as a slump in oil prices has reduced the appeal of the precious metal as an inflation hedge. The level of volatility of precious metals rose to its highest level since January.
Index volatility over the last 60 days reached the level of 18.4, it was the highest since Jan. 10. Based on data compiled by Bloomberg, the number of overall trading around 22% below the 100-day moving average at this time.
In November, gold had touched a $ 1,130.40 / onz, it is the lowest level in four years. Last week, the ownership of the largest investments in exchange traded gold fell to its lowest level since 2009 as a surge in the dollar to a five-year highs against the 10 major currencies on the outlook for higher US interest rates. Crude oil futures on Monday fell approximately 3% in New York.
“The environment as a whole is still very negative for gold,” said Phil Sterible, senior commodities analyst at RJ O’Brien & Associates in Chicago. “The market will still be volatile because the trade will remain very thin in the next two weeks.”
Gold futures for February delivery dropped 1.7% to settle at $ 1,179.80 on the Comex in New York. The precious metal has dropped by 15% from its highest level this year at $ 1,392.60 which achieved on 17 March.
Gold prices extended the weakening dollar as the index erase losses and oil prices fall further. The US Commerce Department on Tuesday will release third-quarter GDP data.
Technically, gold in today’s trading session on Tuesday (23/12) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Bands that began to widen, thus giving impetus to the gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1172.50 and re-test the maximum level of 1768.73. However, if the price of gold is able to break and hold above 1177.90, the estimated price of gold could potentially test the 1180.40 and 1185.72 resistance.
