Gold Immersing Rate Hike
The gold market weakened in the third session and approached the lowest level month after the private employment report that surpassed expectations fueled expectations of rising interest rates faster. Private research group Automatic Data Processing (ADP) reported the addition of 237,000 workers in June, higher than expectations of economists polled by Reuters is the addition of 218,000 workers.
Labor data is one of the indicators used by the Fed to measure the ability of the US economy undergoing monetary tightening. Gold will be difficult to compete with other assets in the climate of higher interest rates because it does not provide interest and dividend like bonds and stocks.
Traders are also looking forward to the important data Non-Farm Payrolls (NFP) will be released on Thursday. NFP data into one data observed by the Fed and economists polled by Reuters are predicting the addition of 230,000 workers in June.
The gold price ended at the level of $ 1168.90 per troy ounce, with daily highs $ 1,174.96 and $ 1,167.45 daily lows.
Technically, gold in today’s trading session on Thursday (02/06) 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 Band begins to widen, thus giving impetus for gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1162.10 and re-test the maximum level of 1157.20. However, if the price of gold is able to break and hold above 1167.60, the estimated price of gold could potentially test the Resistance 1170.10 and 1175.25.
Hongkong Stock Rally After Break
Hong Kong shares in early trading Thursday morning on the day (2/7), the Hang Seng index opened with a continuing successful rally earlier trade by positive sentiment from China while Hong Kong exchange is closed off.
The sentiment of the manufacturing and non-manufacturing data released by the China both government and HSBC also showed positive growth from the previous release.
And there was a surge in early trading in the shares of Hang Lung Properties at 4.99%, Sino Land shares 4.94%, shares of Lenovo 2:23%, Bank of China 0.60%, shares of China Unicorn Hong Kong 0.98%, shares of Henderson Land Development 4:52%, and shares Sun Hung Kai Properties at 4.94%.
The Hang Seng Index opened successfully raced this morning 209.40 points, or 0.80%, to 26459.43 points of the position becoming the previous close at 26250.00 points and broke through highs earlier traded at 26470.44 and the lowest point at 25885.66 points previously.
But slightly different from the movement of the Hang Seng Index this morning, which opened higher by 52 points or 0:20% to become 26 255 points from the previous closing position at 26 203 points and broke through highs earlier traded at 26 494 points and lows at 25 877 points.
Based on the results of the closing on the previous trading, the analyst estimated that the movement of the Hang Seng Index today will still try to penetrate the first resistance at 26 270 points with MA5 under BB10 daily, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 26,500 points the middle MA5 BB10 daily.
If the movement of the index managed to turn around the direction of lower back, it is expected to try to penetrate the first support at 26 075 points with MA5 under BB10 H4, if the movement of the index broke through the first support is expected to try to penetrate the second support at 25 895 points with MA5 under BB10 daily.
Technically, the index on the trading session today, Thursday (02/07) likely to strengthen, test positive trend. At the M15 chart bullish hammer formation to provide opportunities for the index to move upside. However, the volume tends to increase, as well as an early indication of bullish index. In addition, RSI, on the M15 charts, is oversold, signalling upside.
It is estimated, the index test the first resistance level of 26330 and 26390. If it fails at 26280, then the next index is expected to tend to retest the support level that is 26 250 and continued until the possibilities are in the 26200 area.
USDJPY Extend Increase
The movement of the currency market on Thursday (2/7), the US dollar strengthened against the yen observed with continued gains from the previous session when the recovery in the American economy.
On-going trade in the Asian session, the USDJPY rose of 0.05% to trade at 123.24. On this morning, the pair has been seen moving touched a session low 123.15 to 123.25 levels daily and daily highs for the session.
Demand for natural strengthening of the US dollar had occurred due to improving conditions in American economic growth. Sign – a sign that the US economic recovery has been demonstrated with an official report released by Automatic Data Processing stating that non-farm payrolls have grown as much as 237,000 in June after growing as much as 203,000 in May.
While on the other separate report released by the Institute for Supply Management stated that the US Manufacturing PMI has increased, which is a seasonally adjusted 53.5 in June from 52.8 in May.
Meanwhile, an official report released this morning by the Bank of Japan has stated that the Japanese monetary base has decreased the seasonally adjusted 34.2% from 35.6% in May.
Technically, today’s trading session on Thursday (02/06), the dollar yen pair has an opportunity to move in a positive trend.
A stronger yen is mainly expected to immediately retest the resistance at 124.10 minimum and maximum 124.80. Meanwhile, if the Yen could not break below 123.41 and then survive another alternative scenario will be the Yen likely to test support in 123.10 and 122.50 area.
