Nikkei Comfortable In Negative Territory
Still strengthening Japanese yen until the end of the Japanese stock market trading on Wednesday, seemed to still make the movement of Nikkei index in strong pressure, which shares an advanced energy exporter and the top loser was traded Wednesday.
Ballast step Japanese stock market on Wednesday is JFE Holdings amounted to -5.43%, Nippon Steel & Sumitomo Metal -5.31%, -5.01% stake in Isuzu Motors, Nippon Light Metal Holdings -5.83%, -1.97% shares of JX Holdings, Panasonic shares -3.18%, -2.03% stake Sharp, Sony shares -2.59%, Fanuc shares -3.78%, -4.83% stake in Isuzu Motors, Mitsubishi Motors -2.34%, -2.70% shares of Honda Motor, Suzuki Motor shares -3.01 %.
The movement of Nikkei index looks closed Wednesday fell sharply by 343.74 points, or 1.89%, to 17891.00 points of the position into the closing trading on the stock exchange at the position 18234.74 points and managed to record the highest increase stocks traded today at position 18 126, 39 points and the lowest Evel Wednesday at 17831.53 points position.
Likewise, the movement of the index Nikkei futures on Wednesday were also closed sharply lower by 220 points or 1:21%, to be 17 950 points from the closing position at the end of trading stock exchanges previously at position 18 170 points and managed to record the highest increase was traded Wednesday at position 18 135 points and lows today at position 17 840 points.
Japanese stocks traded on Thursday, estimated that investors will get back forward and respond to the results of the data release Tetriarry Industry Index and industrial production data in the country.
Technically, the index on the trading session today, Thursday (15/10) 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 18010 and 18060. If it fails at 17 950, then the next index is expected to tend to retest the support level of 17900 and continued up to the possibility of being in the 17850 area.
Dollar Observed Weakens on US session
The dollar weakened against major rivals on Wednesday after a spate of weak economic data and the Federal Reserve’s Beige Book which suggests that the US economy is still in disorder. ICE US Dollar Index DXY declined 0.5% to 94.2800.
US producer prices fell 0.5% in September, outpacing the expected decline of 0.2% from a survey of economists conducted by MarketWatch, while retail sales increased by only 0.1% in September. The size of the retail sales in August was revised lower to show that there is no change. Fed’s Beige Book, a collection of comments from business leaders in the 12 areas where there is the Fed, showed some slowdown in the economy.
The US currency weakened slightly against the euro rose to $ 1.1473, up 0.8% from the level of $ 1.1378 late Tuesday in New York – the highest level since 18 of September, according to FactSet data.
Concerns about low inflation and deteriorating employment growth makes two voting members of the Fed’s rate-setting committee – the Fed, Lael Brainard and Daniel Tarullo – warned not to get too hastily initiate tariff increases. While Brainard declined to speculate about the timing, Tarullo said straight away that he does not expect the Fed to raise rates in 2015.
Technically, the trading session today, Thursday (15/10), the pair Euro-dollar likely to move in a negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.1400 and maximum 1.1350. Meanwhile, if the Euro is able to break and hold above 1.1469, then another alternative scenario the Euro a chance to test the resistance at 1.1490 and 1.1540 area.
Gold Reaches Highest Level
Gold rose in four consecutive days, the weakening of the dollar helped gold prices hit four-month high. The dollar index against currencies are the result of US economic data that disappointed, reinforce market confidence if the Fed will delay interest rate hikes.
Data released by the US Commerce Department showed retail sales in September rose only 0.1% lower than expectations for a rise of 0.2%. August data was revised down to 0% from the previous release of 0.2%. Core retail sales actually released -0.3%, more than expected -0.1%, and for the month of August rose 0.1% previously released revised to -0.1%. Other data showed the producer price index in September -0.5% worse than economists expected -0.2%.
Low interest rates make gold that is not yielding to become more attractive. Besides weakening US currency may also encourage demand for dollar-denominated assets such as gold.
Gold in trading Wednesday rose more than 1.5%, and ended at the level of $ 1184.20 per troy ounce. While in this morning at 5:47 am trading the range of $ 1183.41 per troy ounce.
Technically, gold on the trading session today, Thursday (15/10) 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 1190.25 and re-test the maximum level of 1195.87. But if the gold price could not break and stays below 1185.30 then predicted gold prices could potentially test the Support 1182.78 and 1177.10.
