Nikkei Weakening On The Impact of Risk Aversion
The Japanese stock market down in early trade gap with bad news from home and abroad to make investors tend to stay away from risky assets such as stocks. The Nikkei 225 was down more than 300 points after the contraction in Japanese GDP report, which reported before the Japanese stock market opened, turned out to be worse than estimated.
Risk aversion sentiment had already thickened amid geopolitical tensions after a series of attacks in Paris. The selloff is expected to continue for the short term but assets in Europe would feel the impact is seen longer.
Conditions tensions sparked risk aversion sentiment which made investors prefer the save-haven assets such as the yen and reduced its position in risky assets such as the stock market. Strengthening of the Yen makes shares of exporters got hit hard as Mazda Motor, Sony, and Panasonic. The entire industry categories in the main section fell except mining.
Technically, the index on the trading session today, Monday (16/11) 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, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the first resistance level of 19500 and 19570. If it fails at 19 425, then the next index is expected to tend to retest the support level of 19400 and continued up to the possibility of being in the 19330 area.
Dollar Closes Last Week with Attenuation Thin
The dollar posted a weekly decline slightly at the end of last week, on Friday. Greenback attempted against its main rivals after US retail sales failed to accelerate the realization of the expectations of economists. The US Dollar Index, DXY, fell 0.2% last week to a level of 98.9810.
Investors are actually more optimistic about the prospects for Federal Reserve interest rate hike in December since the rate-setting committee Fed tea signaled in October. However, even so, a dollar increase only occurs in short bursts, then continues debngan trade in sideways.
Many investors anticipate that the retail sales report penjjualan will host the main event on Friday’s trading, said Matt Weller, senior technical analyst at Forex.com. “Everyone put their hope in the retail sales report on Friday. Then it turned out to be useless, “said Weller.
In currency trading the British GBPUSD traded at $ 1.5230 levle Friday, up from the previous week’s level of $ 1.5039.
Technically, the trading session today, Monday (16/11), pound sterling-dollar pair has an opportunity to move in a negative trend.
The weakening of the pound sterling mainly expected soon reexamine the minimum support at 1.5150 and maximum 1.5100. Meanwhile, if the pound sterling was able to break and hold above 1.5209, then the other alternative scenario that is Pound chance to test resistance in 1.5240 and 1.5290 area.
FOMC Minutes report, Jobless Claims Driving Gold
Depressed gold prices to a four-week low on Friday, weighed down by expectations that the Fed will raise interest rates in December, in line with low inflation and a lack of safe-haven demand for the precious metal.
This week, the World Gold Council released the gold demand trends for the third quarter of 2015, which indicates a strong demand for physical metal. Jewelry demand grew 6% year-on-year, while investment demand for coins and bars surged 27%.
Last week, the selling pressure occurs gold and gold futures tested the lows of July at $ 1,073.70, although it eventually stabilized gold back above the zone of the closing Friday.
This week, there will be reports from the minutes of the Fed meeting on 27-28 October, which can be used as keys on a rise in US interest rates and there will also be other US economic data releases.
Technically, gold on the trading session today, Monday (16/11) the potential reversal, testing positive trend, but prone to profit taking. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Band begins to shrink, thereby giving impetus for gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1096.10 and re-test the maximum level of 1101.50. But if the gold price could not break and stays below 1091.40 then predicted gold prices could potentially test the Support 1088.78 and 1083.40.
