Hang Seng Opened Down
Asian equities are likely to fall on this day, Monday (20/4). Following the decline in the US market. Chinese market is still not opened after the state tightened rules to buy stocks with borrowed money.
Hong Kong’s Hang Seng Index rose 0.4% to a level of 27,770.79, the index of Hong Kong H-share index up 0.1% at 14,557.60. Shanghai Composite Index Index to the level observed flat 4,289.21.
Chinese leaders swung into stimulus mode at the end of last week, cut the amount of borrowing cash, in addition to arranging a loan reserve fund since the global financial crisis, just days after a report showed slowing economic growth in six years.
Percentage ratio fell 1 point per today, April 20, the People’s Bank of China (PBOC) said second reduction this year and the largest since November 2008. It will be pruning at the level of 18.5% from the previous 19.5%.
Technically, the index likely to weaken on the trading session today, Monday (04/20), 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 27 640 and 27 715 27525. If you fail, then the next index is expected to tend to retest the resistance level that is 27 750 and continued until the possibilities are in the area of 27 810.
Yen In Reinforcement
Yen traded higher earlier in the week. This trend is sustained as the requirements of PBOC bank deposits. Monday (20/4).
On the spot USDJPY traded down -0.04% observed at the level of 118.87. China’s securities regulator in tightened lending rules last week, it was a move that led to the falloff in the euro zone, and also makes US stocks also sluggish. Then on Sunday, the PBOC cut the requirement turned bank deposits.
In addition, the market also saw China’s economic stimulus, monetary easing may limit the momentum to decrease. Yen stock still in the reinforcement.
Technically, today’s trading session on Monday (04/20), the dollar yen pair likely to move in a positive trend.
A stronger yen is mainly expected to immediately re-examine the minimum resistance at 119.50 and 120.25 maximum. Meanwhile, if the Yen was able to break and stays below 118.91 and the other alternative scenario will be Yen likely to test support in 119.60 and 119.00 area.
Gold Rises, Supported By Greek Debt Anxiety
Gold futures rise on demand for haven assets as Greece still locked in negotiations to secure funding and avoid default.
Greek government bonds were at their worst level since after the victory of Syriza party in January. The country is currently facing a payment that almost 1 billion euros ($ 1.1 billion) in the next month. In earlier period, gold rose as much as 0.8% to as low as $ 1,207.80.
Two Federal Reserve officials have said that the latest movement of weak US economic data has made them wary to Raise interest rates too quickly, it reinforces the expectation that the Fed will wait until September to tighten policy. Higher interest rates will dampen the appeal of gold, which usually give a profit only when prices rise.
Phil Streible, senior market analyst at RJO Futures in Chicago, said that concerns over Greek debt has caused gold to hold above $ 1.200 and it is a factor that drives the gold moves the range at the moment. I think that the Fed will raise interest rates at a meeting in September.
Gold futures for June delivery rose 0.4% to end at $ 1,203.10 on the Comex in New York. The precious metal has climbed 5.4% of the four-month low of $ 1,141.60 on March 17.
The cost of living in the US, which does not include food and fuel, rose 0.2% in March, it signal that inflation began to strengthen. Some investors buy gold as a hedge against higher consumer prices.
Technically, gold trading session today, Monday (04/20) the potential reversal, tested positive trend, but prone to taking profit. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Bands that began to shrink, thus giving impetus to the gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1209.80 and re-test the maximum level of 1215.10. However, if the price of gold was unable to break and stays below 1204.60 then estimated the price of gold could potentially test the 1202.78 and 1200.10 Support.
