Hong Kong Slips After Weak China Data
Hong Kong stocks widen losses from early trading Tuesday after reading the beginning of March for China’s manufacturing activity fell below the estimate to 11-month lows.
The Hang Seng Index fell by 0.6%, with the Chinese index that follows the Hang Seng China Enterprises Index fell by 1.3%. For the stock market in China, the Shanghai composite index managed to overcome volatile movement after the data, to move in close to closing the previous session, apparently trying to achieve reinforcement for 10 consecutive sessions. Shares of major banks in China weakened, such as China Merchants Bank Co. stock that led losses with a decline of 2.5%. Shares of Bank of China Ltd., which fell 1.6%, shares of China Citic Bank Corp. and China Construction Bank Corp., each of which fell 1.4% and shares Industrial & Commercial Bank of China Ltd. and Bank of Communications Co., each of which fell 1.2% .
The weakening in the index came as HSBC Hong Kong reported that the version of “beginning” of the Chinese manufacturing PMI fell to 49.2, below the 50 level that divides between expansion and contraction, after posting at the level of the final reading of 50.7 in February
Technically, the index on the trading session today, Tuesday (24/03) 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 tends to rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 24260 and 24200. If it fails in 24311, we then estimated the index tends to retest the resistance level of 24340 and continued until the possibility of being in the 24390 area.
Pound Weakens Thin
The British pound today (00:13:04 GMT, Tuesday, March 24, 2015) is generally observed to weaken against other major currencies. Opened at 1.4967 in early trade (0000 GMT), the currency had dropped approximately -7 pips or about -0.05% and the value of rolling seem to be in the range of 1.4960.
Office for National Statistics is scheduled to announce the data consumption in the UK sector. Some economists suspect that the report will be published to show progress are not encouraging.
Indicators of economic fundamentals CPI y / y is expected to show the indication can be estimated weakened and dropped to 0.1% from the previous period of 0.3%. The pound was observed to move down slightly early to respond to these developments.
Analysts suggested daily forex fundamental analysis Pound sterling that the normal range of movement in the GBPUSD is estimated to have the support level at 1.4873 and resistance level at 1.5025.
Technically, the trading session today, Tuesday (24/03), pound sterling-dollar pair a chance to move in the negative trend.
The weakening of the pound sterling primarily expected soon reexamine the minimum support at 1.4880 and 1.4825 maximum. Meanwhile, if the pound sterling was able to break and hold above 1.4936, then the other alternative scenario that Pound chance to test resistance in 1.4950 and 1.5000 area.
Gold Moves High Due On Fed Interest Rate Outlook
Gold prices traded near its highest level in two weeks on speculation that the Federal Reserve may be slow to Raise interest rates in countries with the largest economies in the world.
Gold is currently trading in the range of $ 1187 / onz at 8:34 of $ 1,189 on Monday, when the price rose to $ 1,191, the highest level since March 6. The precious metal rose by 2.1% last week, it was the largest increase since January.
Gold rebounded from three-month lows as Fed chairman Janet Yellen said that policy makers do not hurry to Raise interest rates, although the Fed remove promise to be patient on tightening. The dollar weakened on Monday after Stanley Fischer, vice chairman of the Fed, said that there was no “seamless way to rise” in interest rates, although the increase was first secured the potential at the end of 2015.
Prices may receive support for a ride “from the continued volatility of the currency and the dollar weakening after we get the latest developments from the Fed last week,” said an analyst from Standard Chartered Plc said in a report.
Fed officials on March 18 lowered their estimates for the cost of the loan at the end of 2015 to 0.625% of the estimate in December at 1,125%.
Technically, gold in today’s trading session on Tuesday (24/03) 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 Bands that began to widen, thus giving impetus to the gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1181.33 and re-test the maximum level of 1176.73. However, if the price of gold is able to break and hold above 1186.40, the estimated price of gold could potentially test the 1188.40 and 1192.72 resistance.
