EQUITIES
Asian shares started cautiously on Monday. Mainland Chinese stocks, China's Shanghai Composite advanced 0.33%, while Hong Kong's Hang Seng down -0.30%. South Korea’s KOSPI up 0.95% and Australia S&P/ASX 200 gains 1,.35% in early trading.
Markets in Japan and Singapore are closed Monday for a public holiday.
OIL
Oil prices climbed the morning of Asian trading hours. Brent crude futures traded to $44.80 a barrel, while U.S. crude at $41.72.
On Friday last week, Brent closed at $44.40 per barrel, while WTI futures ended at $41.22 per barrel.
CURRENCIES
Against a basket of its peers, the U.S. dollar was a fraction firmer at 93.35 and just above a two-year trough.
The dollar was a little steadier on the yen at 105.78, well above the recent low of 104.17. The Australian dollar changed hands at $0.7162, rising from an earlier low around $0.7145.
GOLD
After hitting an all-time high of $2,072.5 last week, gold currently trading at $2,028.40 per ounce, while stands around $2,037.40 per ounce for gold futures. Previously closed at $2,034.80 and $2,028.00, respectively.
Silver trading at $27.94, platinum trading at $962.00 and palladium trading at $2,047.00.
ECONOMIC OUTLOOK
Asia Pacific markets traded mixed on Monday as investors remained cautious over heightened U.S.-China tensions in recent weeks.
U.S. President Donald Trump signed several executive orders aimed at extending coronavirus relief, to provide extra $400 in weekly unemployment benefits, less $600/week passed earlier in the crisis.
Another executive order also issued, set to ban American use of WeChat and TikTok, taking effect from the middle of next month. Following that, the Trump administration also will impose a fresh round of sanctions on 11 individuals, including Hong Kong leader Carrie Lam for her role in overseeing and “implementing Beijing’s policies of suppression of freedom and democratic processes.”
China’s factory deflation eased in July. The PPI fell 2.4% from a year earlier.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 20.024 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 734 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 106.610 and 107.073.
- Support line of 105.112 and 104.623.
Commentary/ Reason:
- The dollar eased on the safe haven Japanese yen to 105.79.
- Stochastic oscillator pulled back from oversold range of 20.
- RSI oscillator back to around normal range of 50.
- The MACD is trading below its signal line and positive.
