Consumer Sentiment Rises, Kospi Gains
South Korean stock market, Kospi, rose in early trading today (29.03.2016) after ending flat at the beginning of last week.
Rising consumer sentiment of South Korea help the performance of the stock. Data from the Bank of Korea (BOK) showed consumer sentiment in March rose to 100, from the previous month at 98. The increase means South Koreans generally predict conditions will improve.
BOK kept interest rates at a record low of 1.5% since June 2015 to encourage the strong economy the fourth largest in the Asia.
Technically,
Resistance: 247.00 247.45 248.10 Prev. High / Low: 246.70 / 245.30
Support: 246.30 245.80 245.25 Running Price: 246.70
Comment: For intraday trade today suggest sell at the level of 247.55 stop and reversal during a break above the 247.75 level targets at the level of 245.70 and target of reversal at the level of 248.50.
USDJPY Dips, Yellen Speech On Market Focus
The movement of the currency market on Tuesday (29/3), monitored natural attenuation dollar against the yen, after the release of a report this morning Japan’s economic fundamentals. Janet Yellen’s speech tonight has become the focus of the market.
Ongoing trade in the Asian session, the pair USDJPY tracked down 0:04% to trade at 113.43. In US dollar index, which shows the performance of the greenback against a basket of six other currencies tracked down a 0.01% at the 95.98 level.
The US dollar weakened slightly against the natural monitored of yen this morning, after the market is faced with a series of reports on Japan’s economic fundamentals. The report begins a data from the Bureau of Statistics said that Japan’s household spending rose 1.2% in February after a natural decline of 3.1% in January.
Survey of economists forecast that Japan’s household spending will fall 1.8% in February. The increasing purchasing power of consumers is one sign of achieving the target of the Bank of Japan is now a policy of negative interest rates, which the central bank’s intent and purpose is to stimulate the purchasing power of people back in Japan.
At the same time, the Bureau of Statistics reported that Japan’s unemployment rate unexpectedly rose 0.1%, to a seasonally adjusted 3.3% in February. In another separate report released by METI said that Japanese retail sales today rose 0.5% in February, after a 0.2% decline experienced in January.
Meanwhile, the market movement during Asian trade tends to move flat due to lack of fundamental reports global economy. However, when entered the American trade tonight, US consumer confidence report which accompanied Janet Yellen’s speech will re-ignite the assessed market price volatility shift.
Technically,
Resistance: 113.70 114.10 114.53 High / Low: 113.46 / 113.21
Support: 112.10 112.60 113.00 Running Price: 113.31
Comment: For intraday trade today suggest Sell at the level of 113.50 stop loss at the level of 113.75 and the target at the level of 112.50.
Gold Prices Rise Thin
Gold prices edged higher in late trading Monday, as the dollar weakened after US data were weaker than expected, but prices are still staying close to one-month low with investors focused on a speech by Federal Reserve officials that could provide more clues about the potential increase in interest rate.
The dollar fell from its highest in almost two weeks versus a basket of currencies after data showed US consumer spending rose slightly in February and overall inflation to retreat. The Commerce Department also revised down 0.1 percent gain in January.
Weak US economic data supported the view the Fed will raise interest rates at a gradual pace, weighed on the dollar and in turn helping gold.
Spot gold prices rose 0.28 percent at $ 1,219.46 per ounce, after touching a session low of $ 1,208.15, the lowest since February 23. The precious metal lost 3 percent last week, its biggest weekly decline since November on speculation that rising US interest rates next could come as soon as next month.
Liquidity was thin as London and many other gold markets were closed for the Easter holiday on Monday.
All eyes are now on Fed Chairman Janet Yellen, who will speak about the US economy and monetary policy on Tuesday, to observe the indications on the amount and timing of interest rate hikes this year.
Hawkish comments from Federal Reserve officials last week put investors on alert for the possibility of at least two interest rate hikes this year, triggering a broad correction across commodities and the strengthening US dollar.
Markets were also awaiting a speech by New York Fed President William Dudley on Thursday and non-farm payrolls data on Friday.
“A number of non-farm payrolls above 200,000 can give enough confidence to the market price in two interest rate hikes this year, weighing on gold,” said Carlo Alberto de Casa, chief analyst ActivTrades.
Technically,
Resistance: 1223.10 1225.60 1227.40 High / Low: 1222.60 / 1220.90
Support: 1219.70 1216.00 1212.40 Running Price: 1221.30
Comment: For intraday trade today suggest Buy at the level of 1215.30 stop loss at the level of 1213.00 and the target at the level of 1225.30.
