Japan Machinery Orders Supported Nikkei
Japan’s Nikkei share index rose on Monday, supported by Japanese machinery orders data were positive. Other support came as the start of the BOJ policy meeting and a weaker yen following a slick performance on Wall Street last Friday.
Level Japanese core machinery orders jumped 15% in January from the previous month, outpacing a rise of 4.2% in December and steeper than economists forecast for a gain of 2.0%.
The yen was close to the level of $ 114 per dollar in the Asian session, the yen weakening profitable exporter stocks were a major component of the Nikkei. Spot Nikkei index traded in the range of 17,254.58, gained about 1.80%, or more than 300 points.
Technically,
Resistance: 17200 17260 17330 High / Low: 17140/17010
Support: 17070 17000 16 880 Running Price: 17130
Comment: For intraday trade today suggest Sell at the level of 17165 stop loss at the level of 17120 and targets at the level of 16910.
Yen Gains On Opening Day
Yen in early Asian trade observed a strengthening of the week, Monday (14/3) triggered on core machinery orders data are improving.
USDJPY fell -0.08% to 113.75. Japanese fundamental data such as core machinery orders in January improved seasonally monitored at the level of 15.0% from the previous month’s level of 4.2%. Market projected to fall to a level of 2.0%.
While China is still experiencing a slowdown, as official data released over the weekend showed that China’s factory output in the first year slowed to the weakest level since November 2008.
USD / JPY is currently consolidating at the beginning of the week when we approached the Central Bank again, probably will regulate the movement of the USD / JPY next week.
More Fed rate hike is almost fully anticipated FOMC meeting occurs in November, according to analysts at Westpac, but that did not stop the volatility surrounding the meeting and the results of this week’s event.
“We expect the statement to be noted that a further increase in market volatility could cause a risk of negative side on the prospects. While September will generally optimistic for 2016, dot plots are expected to show the hope median for only three hikes in 2016, but the critical time can be two . The tone overall is expected to be construed as slightly dovish, “explained analyst with TD Securities.
Technically,
Resistance: 114.10 114.50 114.90 High / Low: 113.99 / 113.62
Support: 112.60 113.00 113.40 Running Price: 113.88
Comment: For intraday trade today suggest Sell at the level of 114.00 stop loss at the level of 114.25 the target at the level of 113.08.
Gold Price Retreat
Gold prices retreat about 1 percent in late trading the weekend, Saturday hampered by the strengthening US dollar, oil prices and global stock markets, after the previous trading gold extended gains in early trading after the announcement of the European Central Bank is doing additional easing.
ECB President Mario Draghi launched economic stimulus measures on Thursday by lowering interest rates to zero and increased the level of asset purchases, but hinted there will be no further interest rate cuts.
The US dollar rose again on Friday, after almost a month against a basket of major currencies, as investors bought riskier assets following a surprise announcement from the European Central Bank and the People’s Bank of China.
The US dollar rose on Friday after China set a high level of onshore yuan against the dollar by the fastest pace this year at 6.4850 yuan. People’s Bank of China has set the level of the midpoint of the yuan / dollar official CNY = SAEC at 6.4905 per dollar, the exchange rate remains the strongest in 2016.
Stock Markets Asia, Europe and Wall Street ended a positive weekend, which made a safe haven asset demand for gold has weakened.
Spot gold prices rose as far as $ 1,282.51 per ounce, its strongest since February 3, 2015, before falling 1.69 percent to $ 1,249.76, after the dollar rebounded from a three-week low against the euro. It is on track to shut down about -0.7% a week after a 3 percent surge last week.
While the price of US gold futures for April delivery ended down 1.1 percent at $ 1,259.40 per ounce, after reaching a peak at $ 1,287.80.
The next major market focus is the US Federal Reserve’s policy meeting on March 15 to 16. The Fed raised interest rates for the first time in nearly a decade in December.
If the Fed sets interest rates unchanged next week, gold could be pressured from rising some short-term risks, said ETF Securities analyst Martin Arnold. “In the long term, gold will probably remain above $ 1,200, about $ 1,250 area, while $ 1,300 is a strong resistance level,” added Arnold.
A weaker dollar and hopes for a US rate hike has helped gold rebounded by more than 18 percent this year so far. Gold regained its role as a haven for risk-averse investors, in the face of the collapse of equity markets and fears of a global economic slowdown.
Physical gold demand in top consumer China slowed this week, while a strike by the company related jewelry taxation curbed demand in the world’s number two market in India.
In other precious metals prices, the price of silver futures fell 0.04 percent to $ 15.51 per ounce, the price of platinum futures down 1.6 percent at $ 962.30 and the price of palladium rose 1.4 percent to $ 578.50.
