FXStreet (Mumbai) – The AUD/JPY’s recovery from four-day lows ran out of legs just short of 50-DMA at 85 levels and the prices drifted lower, as the yen appears to regain strength after a minor profit-taking spree.

AUD/JPY holds above 10-DMA

Currently, the AUD/JPY pair rises 0.12% at 84.62, retreating from fresh session highs printed at 84.94, just a whisker away from 50-DMA barrier. The AUD/JPY cross reverses the spike from daily highs and edged lower, as the AUD/USD pair faces fresh selling pressure as the greenback corrects slightly higher after the recent sell-off.

However, the downside remains cushioned as markets unwind their yen shorts after USD/JPY hit fresh two-month lows at 117.03, following worse than expected US services PMI reports, which triggered extensive USD slump across the board.

Meanwhile, the pair will continue to track the USD moves as well as the oil price action ahead of the US weekly jobless claims and factory orders data due later in the NY session.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 84.94/85 (daily high/ 50-DMA) and above which it could extend gains to 86.17/35 (Feb 2 High/ 100-DMA). To the downside immediate support might be located 84.18/14 (daily pivot/ 1h 200-SMA) below that at 83.57/17 (daily S1/ Feb 3 Low).

The AUD/JPY’s recovery from four-day lows ran out of legs just short of 50-DMA at 85 levels and the prices drifted lower, as the yen appears to regain strength after a minor profit-taking spree.

(Market News Provided by FXstreet)

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FXStreet – Most stocks markets in Asia rebounded from the previous sell-off as the oil prices recovered sharply underpinned by broad based US dollar slump and thus, lifted sentiment across the financial markets. However, the Japanese stocks bucked the trend and came under renewed selling pressure this Thursday.

USD sell-off boosts sentiment

The Japanese benchmark index, the Nikkei 225 slips -0.67% to 17,080 points as the overnight rise in the yen amid US dollar sell-off globally hit the exporters’ stocks badly and weighed on the index. USD/JPY skid to fresh two-month lows to 117 handle in the overnight trades and now attempts minor recovery near 118 levels. The greenback slump across the board as markets appear to lose faith in further rate hikes stance by the Fed as the US economic recovery continues to lose steam.

On the other, the Australian markets saw a relief rally on the back of commodities’ rebound, with the ASX 200 index rallying +1.43% to trade at 4,952. Metals and mining stocks benefited the most, while gold producers were also offered some relief after the bullion rose to three-month highs above $ 1140.

The Chinese equities also joined the global rally amid ongoing liquidity injections and stable yuan fixes by the PBOC. The benchmark Shanghai Composite index jumps 1.31% at 2,700. Shenzhen’s CSI 300 index rises 1.48%, while China A50 index advances 1.44%.

Most stocks markets in Asia rebounded from the previous sell-off as the oil prices recovered sharply underpinned by broad based US dollar slump and thus, lifted sentiment across the financial markets. However, the Japanese stocks bucked the trend and came under renewed selling pressure this Thursday.

(Market News Provided by FXstreet)

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FXStreet (Barcelona) – Analysts at ANZ explained that Crude oil prices were sharply higher and noted the action in the commodities sector in general.

Key Quotes:

“The bounce in crude oil prices was extreme, with prices up 10% from the low. Prices rose with a decline in the US dollar and despite steep gains in US crude inventories.

Stockpiles rose to more than 500m bbl for the first time since 1930. EIA data suggest US crude stocks climbed 7.79m bbl to 502.7m bbl last week. The increase was more than double what the market was expecting.

Base and precious metal prices were strong. The gold price remained resilient amid safe haven buying. Physical gold demand from key buyers is also strong. In a recent announcement, China’s Gold

Association said domestic gold consumption for 2015 rose 3.7% to 985.9t. We believe the weaker yuan and rising global growth concerns will continue to attract the interest of Chinese buyers in 2016.

Iron ore prices were stronger. The iron ore price continues to gain before the holiday season but liquidity is thin, with steep declines in trading volumes. On the corporate side the rating agencies continue to downgrade steel companies. In a recent move Moody’s cut JSW Steel Limited’s rating by two notches.”

Analysts at ANZ explained that Crude oil prices were sharply higher.

(Market News Provided by FXstreet)

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FXStreet (Guatemala) – Analysts at Westpac offered details of the key forthcoming events for today.

Key Quotes:

“The Bank of England ends its policy meeting and we also have the quarterly press conference on the Inflation Report. While the first hike still looks some way away as inflation remains low, in Jan the MPC voted 8-1 to keep rates steady at 0.5%, with McCafferty dissenting in favour of a hike. The Inflation Report will provide an update on the BoE’s CPI and GDP projections.

US Dec factory orders are expected at -2.8% though should see only a small revision to durable goods orders. We hear from FOMC voting members Rosengren in the Asian afternoon on regulation and Mester around NY close on the economy and monetary policy. Kaplan also speaks on the global economy.”

Analysts at Westpac offered details of the key forthcoming events for today.

(Market News Provided by FXstreet)

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FXStreet (Guatemala) – AUD/USD has been slightly offered in early Asia, but has since stabilized from a low of 0.7153. The NAB business confidence survey was generally positive, offering some support to the Aussie and the price reached a fresh high of …

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FXStreet – Based on CME Group 30-Day Fed Fund futures prices, used to express the market’s views on the likelihood of changes in U.S. monetary policy, the probability of another rate hike in April remains much lower than what Fed officials are projecting, with market participants assigning only 18% in April and 24% in June.

Based on CME Group 30-Day Fed Fund futures prices, used to express the market’s views on the likelihood of changes in U.S. monetary policy, the probability of another rate hike in April remains much lower than what Fed officials are projecting, with market participants assigning only 18% in April and 24% in June.

(Market News Provided by FXstreet)

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FXStreet – China futures (A50 FTSE – benchmark for investors to access the China domestic market through A Shares – ) is trading up by 0.93% following the recovery seen in the SP500 and the moderate losses of -0.35% in the Shanghai Composite during Wednesday.

China futures (A50 FTSE – benchmark for investors to access the China domestic market through A Shares – ) is trading up by 0.93% following the recovery seen in the SP500 and the moderate losses of -0.35% in the Shanghai Composite during Wednesday.

(Market News Provided by FXstreet)

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