Kopsi Depressed By PPI Data
Early in the South Korean stock market trading Wednesday morning (19/8), the Kospi rebounded successfully opened but after a trade goes back negative move. The pressure this morning received a negative sentiment of investors from South Korea’s poor PPI data which the data recorded its lowest since July 2014.
This morning the stock exchange ballast is -0.64% shares of Hyundai Motor, Kia Motors shares -0.90%, stock KEPCO Plant Service & Engineering -2.42%, -1.81% LG Electronics, Samsung Securities shares -2.91%, -2.41% Hyundai Securities , Daewoo Securities -3.52%, yet successfully amplified by Samsung Electronics shares surge of 3.63%.
Kospi index movement spot this morning still managed to record gains of 1.76 points or 0:09%, with menjad 1956.02 points from the previous closing position at the end of trading on the position of 1956.26 points and managed to record the highest increase earlier traded at 1979.33 points position and decrease the previous low at 1954.35 points position.
Similar to the movement of Kospi index futures this morning that managed to record gains of 0.76 points or 0:32%, by becoming 235.96 points from the previous closing position traded at 235.20 points position and managed to record the highest increase was traded earlier at 236.95 points position but earlier lows on position 234.98 points.
Based on the closing traded before, then Analyst estimates that today’s Kospi index movement will tend to continue weakening dieprdagangan prior to penetrating the first support at 234.20 points with MA5 position under BB10 daily, if the movement of the index broke through the first support is expected to try to penetrate the second support at the position with 233.35 points MA5 under BB10 daily.
If the movement of the index managed to turn around the direction of stronger, then is expected to try to penetrate the first resistance at 236.30 points with MA5 position under BB10 daily, if the movement of the index broke through the first resistance is expected to try to penetrate the second resistacne at 238.00 points with MA5 position under BB10 daily.
Technically, the indexes on the trading session today, Wednesday (19/08) 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 of which is likely to increase, early indications bullish index. In addition, RSI, on the M15 charts, is oversold, signaling upside.
It is estimated, the index test the first support level 232.80 and 232.00. If it fails at 233.45, then the next index is expected to tend to retest the 233.80 resistance level and continued up to the possibility of being in the 234.30 area.
Yen Potentially Out of Consolidation
Japanese Yen exchange rate against the US dollar again listed price is still consolidating conditions. This can be seen at a distance of closing and opening of the thin and early this morning USDJPY closed mengut thin after the US dollar managed to reverse the position because it is supported by the data positf banguan permits (Building Permits) and manufacture of home (Housing Starat).
Data are shown solid support for building permits in July as many as 1.12 million and the construction of new homes rose 0.2% to 1.21 million in July. This data continues to show a positive trend during the recent period be some. This sector has the support strength of the US dollar and is able to suppress the Yen. So early this morning USDJPY closed strong thin 124.40 price, and managed to reverse the position lower than 124.17.
While the economic conditions are less healthy in Japan has recently been shown by preliminary second quarter GDP drop -0.4% despite better-than-expected -0.5%. And recently the Japanese trade balance data reported deficit widening ¥ ¥ -286.1 -69.0 vs July millyar millyar June. More detail on the export activity also experienced shrinkage of growth to 7.6% in July vs 9.5% in June. This condition will urge the BoJ to make additional support especially if the inflation rate is expected to remain stagnant, this condition will also save energy bearish on the yen.
Observed today (00:30:11 GMT) in the range of 124.37 USDJPY rolling, still rolling down 124.40 opening. USDJPY movement today will be affected perkemabangan Japanese industrial index and the direction will depend on the US dollar sentiment that influenced inflation report in July this evening, where the data is to be the size of the Fed’s interest rate hikes pertibangan. Sepekulasi soon as September is still appreciating US dollar and through the inflation report will menembulan optimistic or disappointment.
Technically Secaraa, Analyst see the movement of USDJPY four days later they tend to be flat with an average high and low 124.54 124.10. Based on the formation of high and low prices earlier then expected today USDJPY has Kisara resistance at 124.57 and support at 124.21 range.
Technically, the trading session today, Wednesday (8/19), the dollar yen pair has an opportunity to move in a negative trend.
Weakening Yen mainly expected soon reexamine the minimum support at 124.00 and 123.25 maximum. Meanwhile, if the Yen were able to break and hold above 124.32, then another alternative scenario the Yen likely to test resistance in 124.50 and 125.10 area.
Back Shadowed Prospect of US Rate Hike, Gold Flat
Gold turned flat on Tuesday trading amid rebounding US dollar, after positive housing data support expectations of Federal Reserve rate hike.
Together solid job growth and retail sales rebound, improvements in the US housing sector indicating if the Federal Reserve is still on the path of a rate hike in September or at least at the end of this year. The interest rate is higher potential to put non-yielding assets like gold under further pressure.
While the price of silver was observed to drop approximately 4%, the biggest decline since July 7, following the fall of copper prices to six-year lows on worries about weakening growth in demand from top consumer China.
The concerns over the Chinese market that could destabilize the global economy, particularly in terms of the decline in demand will be dragging commodity prices. Gold and copper have solved their lowest level, “said Colin Cieszynski, chief market strategist at CMC Markets, in a note.
These conditions make the dollar stronger move and put pressure on the gold price. Gold back shed gains pe [at achieved in the previous session, as well as the silver price fell more than 3%. Gold for December delivery fell $ 1.50, or 0.1% and ended at $ 1,116.90 per ounce after rising $ 5.70 on Monday.
However, Simona Gambarini, commodities economist at Capital Economics, said that the increase in demand for gold sought to occur in the second half of this year as the central bank “continues to diversify in order to get away from the pressures of the US dollar.”
Technically, gold in today’s trading session on Wednesday (08/19) 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 1112.10 and re-test the maximum level of 1107.25. However, if the price of gold is able to break and hold above 1117.20, the estimated price of gold could potentially test the Resistance 1120.25 and 1125.60.
