Nikkei Rises More than 1%
Japanese stocks, the Nikkei, continuing rally in early trading on Wednesday (05/11/2016), gained more than 1% following the yen exchange rate continued to weaken. On Tuesday, the Nikkei had gained 2.15%.
Since the beginning of the week, the yen continued to weaken after responding to statements Economic Meneri Japan, Taro Aso. The yen is now trading above 109 per dollar, compared with Monday was at 107.
Aso on Monday said the Japanese government’s readiness to intervene in the currency market if necessary, and on Tuesday increasingly punctuated with calls is “reasonable” if the government intervenes in the market if the yen continues to strengthen.
Technically,
Resistance: 16680 16750 16 880 High / Low: 16815/16580
Support: 16540 16440 16 350 Running Price: 16 615
Comment: For intraday trade today suggest Buy at the level of 16500; stop loss at 16450; targets at 16800.
Aussie Uphill Against US Dollar
The Australian dollar climbed against the US dollar in trading on Wednesday morning (11/5). as from improved consumer sentiment.
AUDUSD rose 0305 at the level of 0.7385. Consumer sentiment released by Westpac Banking corporation showed a rise in May, rising to the level of the previous month’s 8:55 in the level of -4.0%. Moreover, Aussie reacted warmly when China released the CPI report.
Chinese CPI prices increased on an annual basis to a level of 2.3 percent in April, matching economists’ expectations and the results in March. This makes the headline inflation rate unchanged for the third month in a row. Meanwhile, wholesale inflation declined 3.4 percent. This makes for sluggish PPI deflation since December 2014.
Technically,
Resistance: 0.7390 0.7430 0.7470 High / Low: 0.7388 / 0.7349
Support: 0.7300 0.7250 0.7200 Running Price: 0.7353
Comment: For intraday trade today suggest Buy at the level of 0.7300; stop loss at the level of 0.7265; targets 0.7398.
Crude Oil Prices Surge
Crude oil prices surged in late trading yesterday triggered disruptions in supply of 2.5 million barrels per day in Canada and elsewhere to address concerns that US crude oil inventories are high.
Reported a series of attacks on Nigeria’s oil infrastructure has pushed crude oil production is close to 22-year lows in Africa’s largest oil producer, Reuters data showed.
Likewise in Canada, the fire which destroyed a significant portion of the Fort McMurray Alberta oiltown has stopped production of 1.6 million barrels per day and the pipeline operator has closed the facility as a precaution, said consultancy Energy Aspects.
Improvement teams on Tuesday assessing the damage after initial inspection by city officials indicated the Canadian energy they saved the worst as companies in the oil sands area nearby looked to resume production.
US crude futures rose $ 1.22, or 2.8 percent, at $ 44.66 per barrel.
Technically,
Resistance: 44.80 45.30 45.80 High / Low: 44.71 / 44.43
Support: 44.00 43.50 43.00 Running Price: 44.44
Comment: For intraday trade today suggest Sell 44.80; stop loss at the level of 45.10; the target at 43.50.
