- Summary:
- Asian markets finished mixed amid rising tensions between China and the USA after President Trump said he plans to take action against China. AUDUSD
Asian markets finished mixed amid rising tensions between China and the USA after yesterday President Trump said he plans to take action against China this week over the national security laws on Hong Kong. Hong Kong administration reassured investors that the new law would not alter civil liberties. Wall Street ended higher yesterday on reopening hopes as the economy returns gradually to normal. Positive news from the coronavirus vaccine front also lifted sentiment. Novavax (NVAX) 20% higher as it starts Phase 1 Coronavirus vaccine.
It is a quiet day in our forex calendar today. Traders will focus on ECB President Christine Lagarde’s speech during the European session and the Fed’s Beige Book later on the day.
Nikkei 225 ended 0.73% higher at 21,426. The Hang Seng Index is 0.93% lower at 23,154. The Shanghai Composite index is 0.22% lower at 2,840. The Singapore Straits Times index is 0.46% lower at 2,518. The ASX 200 managed to reverse early losses and as of writing is 0.07% higher at 5,784.
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AUDUSD Stops At 200-Day Moving Average
AUDUSD retreat slightly today after a second attempt to break above the 200-day moving average. Australian Prime Minister warned Australians that the opening of the economy would be harder than the closing down as the unemployment rise. Above the coronavirus crisis, Australia facing rising trade tensions with China after China’s Ministry of Commerce imposed 80% tariffs on Australian barley for five years.
On the data front, the Australia Construction Work Done surprised positive as it came in at -1%, beating the forecasts of -1.5% in the first quarter. The previous week, the Fitch rating agency cut Australia’s outlook negative amid the coronavirus impact on the global economy.
AUDUSD rebound from March laws stalled yesterday and today at the 200-day moving average. On the downside, the initial support for AUDUSD stands at 0.6631 the daily low. Below 0.6631 the next target will be at 0.6542 the low from yesterday’s trading session. Next support area would emerge at 0.6486 the 100-day moving average.
On the other side, first resistance for AUDUSD stands at 0.6657 the daily high. Next support will be met at 0.6687 the high from March 9. A break below 0.6687 might test the 0.6721 the high from February 18.