EQUITIES
Asian share markets traded higher, except for Singapore’s SGX that retreated -0.14%. Meanwhile, Japan's Nikkei 225 gains 1.87%, Hong Kong's Hang Seng up 0.82%, and China's Shanghai Composite rose 1.27%. Meanwhile, shares in Australia also traded higher, as the S&P/ASX 200 appreciated 0.66%, and South Korea’s KOSPI rose 1.44% in early trading.
OIL
Oil retreated in the morning of Asian trading hours. Brent crude futures traded to $42.81 a barrel, while U.S. crude at $40.22.
On Friday, Brent closed at $43.24 per barrel, while WTI futures ended at $40.55 per barrel.
CURRENCIES
Against a basket of currencies, the dollar was off at 96.45 on Monday and not far from the June trough of 95.714, after declining from levels above 96.9 last week.
The Japanese yen traded at 106.81 per dollar following a strengthening from levels above 107.2 against the greenback last week. The Australian dollar changed hands at $0.6968 after turbulent trading last week that saw it swinging between levels below $0.694 to above $0.698.
The U.S. dollar started the week with a soft tone on Monday, after ended its third week of losses on Friday as investors bought into risk-sensitive currencies on bets that the worst of the pandemic’s sweeping impact was over.
GOLD
Gold currently trading at $1,804.30 per ounce, while stands around $1,809.30 per ounce for gold futures as of writing time. Previously closed at $1,798.60 and $1,801.90, respectively.
Silver trading at $18.93, platinum trading at $833.00 and palladium trading at $1,930.00.
ECONOMIC OUTLOOK
Asian shares crept toward five-month peaks on Monday as investors wagered the U.S. earnings season would see most companies beat forecasts given expectations had been lowered so far by coronavirus lockdowns, shrugging off concerns over the rising number of coronavirus cases stateside.
Oil prices eased in early trade. The slips were due as traders eye supply cut easing at OPEC meeting later in the week.
To date, number of confirmed worldwide cases for COVID-19 pandemic has passed 13 million today affecting 213 countries and territories around the world and 2 international conveyances, recording more than 572 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 108.818 and 108.165.
- Support line of 106.692 and 106.074.
Commentary/ Reason:
- The dollar was a fraction softer on the yen at 106.82, off two-week lows of 106.635 set on Friday.
- Stochastic indicator value is less than 20, signalling that the indicator had entered undervalued range.
- RSI oscillator also creeping around the undervalued range.
- The MACD is trading below its signal line and negative. The configuration is negative.
