EQUITIES
Asian shares traded mixed on Wednesday. Nikkei 225 and South Korea’s KOSPI rose 0.17% and 0.05%, respectively. While others, including mainland Chinese stocks, China's Shanghai Composite retreated -1.71%, Hong Kong's Hang Seng loss -0.24%. Singapore’s and Australia S&P/ASX 200 also down by -0.46% and 0.49%.
Thailand markets are closed today for a public holiday.
Overnight, the three major indexes, the S&P 500, the Dow Jones and the Nasdaq Composite ended the day lower after virus aid talks between the White House and lawmakers stalled.
OIL
Oil prices rose the morning of Asian trading hours. Brent crude futures traded to $44.68 a barrel, while U.S. crude at $41.76.
On Tuesday, Brent closed at $44.50 per barrel, while WTI futures ended at $41.61 per barrel.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.84, swinging higher from levels above 93 seen earlier this week.
The Japanese yen traded at 106.69 per dollar as the greenback found support on Wednesday. The Australian dollar changed hands at 0.712, firm just below a one-week high at $0.7147.
GOLD
Gold prices fell more than 5% overnight, the worst 1-day decline in seven years. Gold currently trading at $1,891.20 per ounce, while stands around $1,892.80 per ounce for gold futures. Previously closed at $1,910.00 and $1,946.30, respectively.
Silver trading at $24.00, platinum trading at $915.00 and palladium trading at $1,945.00.
ECONOMIC OUTLOOK
Markets in Asia Pacific mostly declined on Wednesday morning, erasing earlier gains as investors continue to monitor coronavirus developments.
Russia claimed to have developed the first vaccine in the world, despite international scepticism about whether Russia’s vaccine was effective and safe, with doubts cast on the approach on testing.
Meanwhile, the U.S. was still in a stalemate over virus aid talks.
Gold prices fell more than 5% overnight, the worst one-day decline in seven years as investors’ risk appetite returned, boosting U.S. stocks. The bullion down sharply from Friday’s record intraday high of $2,089.20.
The Reserve Bank of New Zealand held its official cash rate at 0.25% in a widely expected decision and expanded its large scale asset purchase (LSAP) programme to as much as NZ$100 billion ($65.39 billion).
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 20.521 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 746 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 104.649.
Commentary/ Reason:
- The dollar gain ground at 106.75 yen. The yen fell 0.2% to its lowest since July 24.
- Both Stochastic and RSI oscillators entered overvalued ranges.
- The MACD is trading above its signal line and positive. The configuration is positive.
