简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:The S&P 500 aimed higher on Friday on welcoming progress in US-China trade talks, dampening the appeal of the US Dollar. Asia Pacific equities may
Asia Pacific Market Open Talking Point
The US Dollar depreciated on Friday with an improvement in sentiment
US-China seem to be inching closer towards a trade deal, S&P 500 rose
APAC equities may follow Wall Street higher, Nikkei 225 eyes resistance
Check out our 1Q forecasts for currencies like the US Dollar in the DailyFX Trading Guides page
The US Dollar (DXY Index) generally weakened across the board on Friday amidst an improvement in sentiment. Although, losses were trimmed towards the end of the session. Both the S&P 500 and Euro Stoxx 50 closed about 0.6% and 0.3% to the upside. The cause of market optimism seemed to stem from welcoming news on the US-China trade war front.
After meeting with Chinas Vice Premier Liu He, US President Donald Trump announced that there is a “good chance” that a trade deal will be made. It looks as though the deadline before the US imposes additional tariffs on China (March 1) has been extended. What is interesting is that shortly after the announcement, the US Dollar pared losses looking at the chart below.
Initial Market Reaction to US-China Trade Update
Chart created in TradingView
At the time of this writing, S&P 500 futures pared their losses (seen above) and closed higher. But, there was also a rebound in front-end US government bond yields as USD trimmed its losses. It seems that an improving external environment bodes well for hawkish Fed monetary policy expectations, opening the door to gains in the Greenback. By the end of the day, the pro-risk Australian and New Zealand Dollar were generally higher.
As we begin the new week, economic event risk during Mondays Asia Pacific trading session I notably lacking. This places the focus on risk trends. As such, we may see APAC equities echoing the gains seen on Wall Street. Despite bearish technical warning signs, the ASX 200 continues to make upside progress amidst increasing RBA rate cut bets.
Join Analyst David Cottle later today as he will be going over the major drivers for Asia Pacific markets this week, focusing on regional currencies such as the Japanese Ye
Nikkei 225 Technical Analysi
Japans Nikkei 225 continues to make upside progress after climbing above the falling resistance line from October. If market mood continues improving, we may see the index track closer the near-term resistance at 21851.30. Meanwhile, support appears to be at 21035.90.
Nikkei 225 Daily Chart
Chart Created in TradingView
US Trading Session Economic Event
Asia Pacific Trading Session Economic Event
** All times listed in GMT. See the full economic calendar here
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
The Japanese Yen rose 0.7% against the US Dollar after BoJ Governor Kazuo Ueda hinted at potential rate hikes. This coincided with a recovery in Asian markets, aided by stronger Chinese stocks. With the July FOMC minutes already pointing to a September rate cut, the US Dollar might edge higher into the weekend.
The Australian Dollar (AUD) traded sideways against the US Dollar (USD) on Tuesday, staying just below the seven-month high of 0.6798 reached on Monday. The downside for the AUD/USD pair is expected to be limited due to differing policy outlooks between the Reserve Bank of Australia (RBA) and the US Federal Reserve. The RBA Minutes indicated that a rate cut is unlikely soon, and Governor Michele Bullock affirmed the central bank's readiness to raise rates again if necessary to combat inflation.
JPY strengthened against the USD, pushing USD/JPY near 145.00, driven by strong inflation data and BoJ rate hike expectations. Japan's strong Q2 GDP growth added support. However, USD gains may be limited by expectations of a Fed rate cut in September.
Gold prices remain above $2,500, near record highs, as investors await the Federal Open Market Committee minutes for confirmation of a potential Fed rate cut in September. The Fed's dovish shift, prioritizing employment over inflation, has weakened the US Dollar, boosting gold. A recent revision showing the US created 818,000 fewer jobs than initially reported also strengthens the case for a rate cut.