Nikkei Ends Negative Trading
Nikkei at the end of trading, the Nikkei index ended negative. The Nikkei closed down 191 points or 0.98 percent at 19 301. Data released economic indicators have not been able to lift the index. The weakening of the Japanese stock exchange hampered by the strengthening yen.
Until yesterday afternoon Yen exchange rate still rose against the US dollar. USDJPY exchange rate was observed to be in the red, down 0.25% at 122.62. This means terjdi strengthening Yen.
Meanwhile, Japanese economic data which was two days in a row recorded a positive result has not been able to corroborate the Nikkei index. On Tuesday, the revised third-quarter gross domestic product (GDP), the broadest measure of economic health, the number indicates the economy is not in a technical recession as indicated by preliminary data.
On the day yesterday, core machinery orders in October, the size of the capital expenditure in the economy, rose 10.7 percent in the month, against a Reuters poll of economists are predicting a decline of 1.5 percent. Core machinery orders rose 10.3 percent at an annual rate, also beating expectations.
While in stock trading, manufacturing stocks traded lower despite positive economic data. Hitachi Construction shares fell 0.16 percent while Komatsu ended at down nearly 1 percent.
While the blue chip stocks of Japan mostly down, with shares of Sony and Mitsubishi Electric each fell more than 1 percent.
Elsewhere, the Nikkei reported that the Japanese finance ministry will issue 40-year government bonds in the next fiscal year to reduce the risk of debt costs.
As for Nikkei futures tracked down -20 points or 0.10% at 19.280, down from the previous trading at 19,300.
For this Thursday, will be released some data expected Japanese economic indicators were mixed:
Data BSI Large Manufacturing (QoQ) Q4, is indicated by the results of a consensus in the position of 12.1%, an increase from the previous 11%.
Data Foreign Investment Bond, estimated to be in the position of 291.41 billion yen, an increase from the previous 156.7 billion yen.
Data Stock Investment by Foreigners, estimated to be in the position of 55.8 billion yen, an increase from the previous result in 54.6 billion yen.
Technically, the index on the trading session today, Thursday (10/12) is 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 19160 and 19240. If it fails at 19 090, then the next index is expected to tend to retest the support level of 19050 and continued up to the possibility of being in the 19000 area.
Euro Gains
The euro strengthened against the dollar for a third day in a row on the day yesterday, glided above $ 1.10 for the first time in more than a month due to a selloff in crude oil are pushing investors out of commodity-linked currency rivals along with it.
EURUSD traded at $ 1.1020 at the end of the session Wednesday in New York, compared with $ 1.0888 level late Tuesday pad. The euro rose as high as $ 1.1043 earlier in the session Wednesday – its highest level since 3 November, according to FactSet data. Low interest rates imposed by the European Central Bank made the euro became the currency for attractive financing.
The euro edged higher against the dollar yesterday, while commodity-linked currencies rose after sharp declines in the previous two sessions behind the selling price of oil.
Technically, the trading session today, Thursday (10/12), the pair Euro-dollar likely to move in a negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.0950 and maximum 1.0900. Meanwhile, if the Euro is able to break and hold above 1.1010, then another alternative scenario the Euro a chance to test the resistance at 1.1040 and 1.1090 area.
Gold Trim – Worrying Rate Hike
Eliminate profits in the gold market trading volumes were thin with traders wary Federal Reserve meeting next week’s expected would be when the US central bank to raise interest rates. Gold trading ended at the level of $ 1073.45 per troy ounce, down 0.13%.
Fall of the dollar helped gold reach daily highs above 1085. The dollar fell sharply as investors reduce the impact of action in the trading of its purchasing position Greenback against the Yen, Sterling and Euro in thin trading. But investors were wary and stay focused on the opportunities of the Federal Reserve’s interest rate hike next week to press the gold market to submit daily gain. Rising interest rates are negative for gold prices will become less competitive than yielding assets in the form of interest.
Technically, gold on the trading session today, Thursday (10/12) 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 1079.20 and re-test the maximum level of 1085.00. But if the gold price could not break and stays below 1074.10 then predicted gold prices could potentially test the Support 1070.78 and 1065.40.
