Weight the Manufacturing Sector South Korea’s Kospi
Kospi recorded slightly after weakening South Korean manufacturing data confirms the threat of economic slowdown in Asia’s biggest 4. South Korea’s manufacturing index fell from 78 to 76 for the month of November.
Output of the service sector also recorded an increase of only 0.1% in September after rising 0.3% in August. From the corporate sector, Samsung Electronics shares fell 1% after the South Korean technology company reported a 60% drop in annual profit for the third quarter of 2014. The Kospi futures were down 0.44% and is now trading at 248.10.
Investors also looked wary after the Federal Reserve’s statement this morning made investors worried about the outlook for US monetary policy. Fed has terminated its bond purchasing program highlighting the low interest rate policy will still run for a while.
However, Fed optimism on the sustainability of US economic recovery and improvement of the labor sector Uncle Sam raises concerns about the potential increase in interest rates faster than it should in the next year. Fed’s policy of low interest rates is one factor sustaining world economic growth so that rising interest rates may reduce the power of global economic recovery.
Technically, the index in the trading session today, Thursday (30/10) 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 246.50 and 244.00. If it fails at 248.15, then the next index is expected to tend to retest the 249.90 resistance level and continue until the area is likely to be 250.95.
Yen Strengthens Thin, Movement Still Prone Correction
US Dollar today (12:28:57 GMT, Thursday, October 29, 2014) moved lower against the Japanese Yen is very thin. The opening price is at 108.11 in early trading (00:00 GMT), and the currency has risen about – 1 pips or about -0.01%. Value was observed to be in the rolling USDJPY 108.10.
Positive sentiment against the Yen seems only slightly higher after METI Ministry of Economy, Trade and Industry said that industrial production in Japan increased performance.
The development is shown by the increase in economic indicators Prelim Industrial Production m / m rate increased to 2.7% from the previous period is – 1.9%. Encouraging information showed better performance than the estimated number of economists, who predicted only figure will rise to 2.3%. The US dollar moved higher observed responding to these developments.
Analyst suggests daily forex fundamental analysis of the US dollar exchange rate that the normal range of the dollar / yen is estimated will have support level at 107.74 and resistance level at 108.33.
Technically, today’s trading session on Thursday (30/10), the dollar yen pair likely to move in a positive trend.
A stronger yen is mainly expected to immediately reexamine the minimum resistance at 110.50 and 112.50 maximum. Meanwhile, if the yen is not able to break and stays below 108.95 then another alternative scenario, namely Yen likely to test support in 107.10 and 105.50 area.
End the Fed QE, Gold Slump
Gold fell on Wednesday after the US Federal Reserve ended the bond-purchase program or quantitative easing (QE), which has been going on for two years after the US economy continues to show improvement. The US central bank also signaled optimistic the US economy will continue to be on a recovery path despite the global economic slowdown.
Strengthening the previous gold supported by low interest rates and increased liquidity by the Federal Reserve in recent years after the financial crisis of 2008. Gold shot 70% from December 2008 to June 2011 when the Fed purchases bonds and interest rates on hold at its lowest level . In contrast to last year when gold fell 28% speculation the Fed will reduce its bond-purchase program broke.
The Fed meeting this time reiterated will keep interest rates low in “some future time”. But the Fed also added that if the economy is growing faster than the expectations of the first rate hike may happen sooner than expected.
The Fed meeting in September said there is still a significant workforce capacity untapped, at this time the meeting said that untapped capacity in the labor market began to decrease gradually, giving a sign the US labor market continues to show recovery. The US central bank also said that while inflation is still low, but for the long-term expectations are still stable. Said consumer spending rose moderately, business investment companies are on the rise, while the recovery in the housing sector is still slow.
Gold in trading Wednesday to close at $ 1,121.10 per troy ounce, with daily highs and lows $ 1,230.44 $ 1,208.68.
Technically, gold at today’s trading session on Thursday (30/10) 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 1210.50 and re-test the maximum level of 1215.10. However, if the price of gold is able to break and hold above 1214.40 then estimated the price of gold has the potential to test the 1218.50 and 1213.10 Resistance.
