EQUITIES
Asian shares mostly mixed today, with Nikkei 225 and Australia S&P/ASX 200 gaining at 0.07% and 0.73%. Meanwhile, mainland Chinese stocks, China's Shanghai Composite retreated -0.16%, Hong Kong's Hang Seng loss -0.14%, and South Korea’s KOSPI leading the loss at -1.43%.
The S&P 500 ended 0.20% lower on Thursday after briefly trading above its record closing high level for a second day, and the Dow Jones Industrial Average dipped 0.29% in the wake of a disappointing forecast from Cisco Systems Inc (-11.2%). The Nasdaq Composite, boosted by Apple Inc (1.8%), added 0.27%.
OIL
Oil prices advanced on Friday and were heading for a second week of gains. Brent crude futures traded to $45.07 a barrel, while U.S. crude at $42.30.
On Thursday, Brent closed at $44.96 per barrel, while WTI futures ended at $42.24 per barrel.
CURRENCIES
The U.S. dollar traded lower against a basket of its peers as the dollar index fell 0.07% to 93.28. Still above the two-year low reached last week.
JPY weakened 0.03% versus the greenback at 106.93 per dollar. the Australian dollar edged lower to $0.7139 as the weak Chinese data suggests less demand for Australian commodity exports.
NZD was under pressure at $0.6537 as the country also faces a fresh COVID-19 outbreak and after dovish comments from the central bank this week. Malaysian ringgit retreated ahead of the Q2 GDP announcement later today.
GOLD
Gold currently trading at $1,958.10 per ounce, while stands around $1,970.20 per ounce for gold futures. Previously closed at $1,952.80 and $1,979.30, respectively.
Silver trading at $27.43, platinum trading at $948.00 and palladium trading at $2,037.00.
ECONOMIC OUTLOOK
Asia Pacific markets mostly fell in early trade on Friday as investors remained cautious after U.S. lawmakers seemed unable to move forward with a coronavirus stimulus bill.
U.S. initial claims for state unemployment benefits decreased to 963,000 for the week ended Aug. 8, the lowest level since mid-March. Data showed the world’s largest economy regained only 9.3 million of the 22 million jobs lost between February and April.
China's property investment in July quickens to over one-year high. The investment rose 11.7% YoY, quickening from 8.5% growth seen in June.
China's July retail sales fell 1.1% in July from a year ago for seventh straight month, while factory output grew 4.8% in July from a year earlier.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 21.067 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 753 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 107.171 and 107.369.
- Support line of 106.528 and 106.329.
Commentary/ Reason:
- This week has been a bad for the Japanese yen, which is headed for its biggest weekly drop against the dollar in two months as a jump in U.S. yields attracted flows from Japan.
- The yen was steady on the dollar at 106.67 in morning trade.
- Both Stochastic and RSI oscillators are pulled into undervalued ranges.
- The MACD is trading below its signal line and positive.
