Weak Growth Outlook China, HK Shares Injured
Stock Exchange of Hong Kong (HK) looks weak as investors await the release of Chinese inflation data on Tuesday morning. Investors pay attention to the latest batch of data as an indicator of the economy and how Beijing would react to the stimulus. Yesterday Chinese stocks fell sharply amid gloom about the prospects for growth of the country.
Nevertheless, investors restore their hopes for more stimulus. “We are reviewing estimates twice PBOC policy rate cut by 25 basis points year-end to a downward revision,” wrote Tim Condon, ING strategy, said in a morning note.
Fall in oil prices overnight could depress energy shares Hong Kong, because they are already weighing on Australia’s S & P ASX 200 Futures heavy energy for the Hang Seng Index was last down 0.5%. Money and credit data will also be presented April China, some time from today until Sunday.
Technically,
Resistance: 20050 20130 20190 Prev. High / Low: 19917/19822
Support: 19830 19780 18700 Running Price: 19880
Comment: For intraday trade today suggest Buy 19800 stop loss at the level of 19740 the target at the level of 20050.
AUDUSD Depressed
AUDUSD ended lower at the beginning of the week and will be looking forward to the release of China’s annual inflation data for April. AUDUSD on Monday (9/5) ended down 0.72%, or 53 points higher than the previous closing level at the 0.7316 level.
The Australian dollar is sensitive to expectations regarding the condition of the Chinese economy which is the main trading partner countries. On Sunday (8/5), China reported a drop in the level of exports and imports for the month of April, worse than economists’ expectations. Conditions sluggishness of international trade activities of China made investors worried about the potential decline in Chinese demand for Australian exports.
Reuters predict the results of the survey, the Consumer Price Index (CPI) of China will grow 2.4% in April compared to a year earlier, slightly better than the previous month’s report growth of 2.3%. AUDUSD risky depressed below the psychological level of 0.73 if the data reported lower than expected.
Furthermore AUDUSD fell for a potential short-term support around 0.7280 reverse resistance at 0.7330 area.
Technically,
Resistance: 0.7350 0.7400 0.7450 High / Low: 0.7321 / 0.7298
Support: 0.7260 0.7220 0.7180 Running Price: 0.7308
Comment: For intraday trade today suggest Buy at the level of 0.7250 stop loss at the level of 0.7215 targets 0.7348.
Gold Prices Retreat Nearly 2 Percent
Gold prices fell more than 1 percent in late trading Monday stressed the strengthening US dollar.
The US dollar index, which reached a 16-month low last week, rising 0.3 percent on Monday, with the yen fell after Japan’s finance minister said that Tokyo is ready to intervene in currency markets if necessary if the yen moves are too volatile.
Helped raise the US dollar, the New York Federal Reserve President William Dudley said that the two rise in US interest rates remain “reasonable expectations” for this year.
Failure gold metal to remain above $ 1,300 after the US jobs data was weaker than expected on Friday also led some investors to profit taking in gold.
Spot gold prices fell 1.8 percent at $ 1,263.91 per ounce, erasing gains made 0.8 percent on Friday after data on non-farm payrolls were weak.
While the price of US gold futures for June also came under pressure, settled $ 27.40 lower at $ 1,266.60.
Gold prices rose after four days of losses when the payrolls report showed the US economy added jobs at least in seven months in April, leaving only a few economists expect a rate hike from the Federal Reserve this year.
Technically,
Resistance: 1265.10 1267.60 1271.40 High / Low: 1265.00 / 1259.30
Support: 1261.70 1258.00 1256.40 Running Price: 1263.60
Comment: For intraday trade today suggest Buy 1260.00 stop loss at the level of 1257.50 the target at the level of 1270.00.
