EQUITIES
Asian share markets are in red after China’s and Singapore’s economic data released,. Japan's Nikkei 225 retreated -1.04%, Hong Kong's Hang Seng losses -1.68%, China's Shanghai Composite down -1.10%, and Singapore’s down -0.68%. Meanwhile, shares in Australia also traded lower, as the S&P/ASX 200 retreated -0.82%, and South Korea’s KOSPI down -0.58% in early trading.
OIL
Oil retreated in the morning of Asian trading hours. Brent crude futures traded to $41.87 a barrel, while U.S. crude at $39.19.
On Monday, Brent closed at $42.72 per barrel, while WTI futures ended at $40.10 per barrel.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.56 after earlier bouncing from levels around 96.3.
The Japanese yen traded at 107.17 per dollar after weakening from the 106.8 against the greenback yesterday. AUD was little changed at $0.6939. Sentiment for the Aussie has taken a hit as some Australian states also re-impose coronavirus restrictions.
The dollar in narrow ranges against most currencies on Tuesday as concerns about diplomatic tension between the U.S. and China and rising coronavirus cases put a dent in risk appetite.
GOLD
Gold currently trading at $1,797.50 per ounce, while stands around $1,801.30 per ounce for gold futures as of writing time. Previously closed at $1,802.00 and $1,814.10, respectively.
Silver trading at $19.03, platinum trading at $823.00 and palladium trading at $1,914.00.
ECONOMIC OUTLOOK
Stocks in Asia Pacific dips in Tuesday morning trade, as China’s yuan-denominated trade data for June released.
OPEC+ set to roll back some production cuts as coronavirus risks sending prices lower again. OPEC and allies, including Russia, are expected to ease production cuts to 7.7 million bpd, down from a record cut of 9.7 million bpd for May through June.
Singapore enters recession, as Q2 GDP contracts to a record 41.2%. For YoY, the GDP plummeted 12.6%. The performance was linked with the implementation of partial lockdown measures by the government to curb the spread of coronavirus.
China’s trade data released: Yuan-denominated exports in June rose 4.3% YoY, while imports also jumped 6.2% in the same period.
Later today, some of the largest banks in the U.S. such as Citigroup and JPMorgan Chase are set to report their earnings.
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 576 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 stood at 107.180 yen on Tuesday in Asia following a gain in the previous session.
- Stochastic indicator value is less than 20, signalling that the indicator had entered undervalued range.
- RSI indicators steadies around normal range of 50 after recovering from overbought ranges.
- The MACD is trading below its signal line and positive.
