EQUITIES
Asian share markets mixed, as Singapore’s down -0.99%, Hong Kong's Hang Seng loss -0.76%, and South Korea’s KOSPI retreated -0.13%. Mainland Chinese stocks, China's Shanghai Composite up 1.16%, Nikkei 225 rose 1.91%, and Australia S&P/ASX 200 up 0.23% in early trading.
OIL
Oil prices fell in the morning of Asian trading hours on concerns about oversupply. Brent crude futures traded to $43.29 a barrel, while U.S. crude at $40.01.
On Friday, Brent closed at $43.52 per barrel, while WTI futures ended at $40.27 per barrel.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.588 after touched its lowest since May 2018 on Friday at 92.538.
The U.S. dollar ticked up in early today trade, as a squeeze on crowded short positions gave the dollar a rare bounce.
The Japanese yen traded at 106 per dollar after weakening sharply from levels below 105 late in the previous trading week. The Australian dollar changed hands at $0.713 after slipping from levels above $0.72 last week.
GOLD
The decline in the dollar combined with super-low real bond yields has been a boon for gold, which boasted its biggest monthly gain since February 2016.
Gold currently trading at $1,975.70 per ounce, while stands around $1,992.20 per ounce for gold futures. Previously closed at $1,976.10 and $1,985.90, respectively.
Silver trading at $24.31, platinum trading at $897.00 and palladium trading at $1955.00.
ECONOMIC OUTLOOK
Stocks in Asia Pacific traded mixed Monday morning as U.S.-China tensions continue to heat up.
Tensions between Washington and Beijing continued to be watched by investors, with U.S. Secretary of State saying that President Trump is set to announce “in the coming days” new actions related to Chinese software companies viewed by his administration as a national security threat.
China’s Caixin/Markit manufacturing PMI came in at 52.8 for July, as compared to 50.9 in June.
South Korea's IHS Markit PMI rose to 46.9 in July from 43.4 in June, marking the highest reading since January. But that was still below the 50 threshold that separates growth from contraction, showing shrinks for seventh month.
Japan Q1 GDP unchanged at 2.2% annualised contraction after second revision.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 17.185 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 670 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 106.087 and 106.538.
- Support line of 104.623 and 104.172.
Commentary/ Reason:
- The dollar regained a little ground on the yen to 105.87 after hitting a 4-1/2-month low last week at 104.17.
- Stochastic oscillator is scaling onto an undervalued range.
- RSI indicator pulled back from overvalued range.
- The MACD is trading below its signal line and positive.
