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Asian Equities Rally Here's Why

Updated 10:29AM 06/02/2020


EUR and USD are the top G10 FX gainers today while GBP and NZD are the top losers, down -0.25% and -0.22% vs the dollar. The Australian dollar strengthened for a fourth consecutive day and demand for riskier assets was up after as China unexpectedly announced that it will reduce tariffs on U.S. imports. Sterling remained weak as concerns over talks between the UK and the EU for a trade deal post-Brexit worried investors, while a broad dollar strength also weighed on Cable. In the Asian equities space, the Nikkei 225 closed 2.23% higher at 23,873.59, Hang Seng closed 2.64% at 27493.7 and Kospi ended 2.88% at 2227.94. The European equities were also trading firm with the FTSE up +0.13% at 7491.99, DAX up +0.52% at 13548.4, and CAC up +0.52% at 6016.66. In the rates market, global yields were trading firmer; the US 10-year yield was trading at 1.6491% and the Bund 10-year yield trading at -0.35%. In the energy space, the Brent (front month) is trading up (0.74%) for the day at $55.69.

 

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Economic Calendar

 
 

10-year Yields Daily Chart (6-month)

 
 

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Brent Front Month Daily Chart (6-month)

 
 

USD-Index Daily Chart (6-month)

 
 

(Content and Data by Tradermade)

 

Forex Chart and Technical Analysis

 

EURUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.1014 for 1.0959
Short-term view: EUR/USD resistance comes in at 1.1014, MACD crossover suggests a bearish bias and RSI is below 50. Hence we see a downside to 1.0959. Above 1.1014 to open 1.1034

 

GBPUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.3010, for 1.2896
Short-term view: GBP/USD resistance comes in at 1.301, MACD crossover suggests a bearish bias and RSI is below 50. Hence we see a downside to 1.2896. Above 1.301 to open 1.3063.

 

USDJPY Chart (Two-week)

 
 

Strategy: Support at 109.66 for 110.21
Short-term view: USD/JPY support comes in at 109.66, MACD crossover suggests a bullish bias and RSI is above 50. Hence we see an upside to 110.21. Below 109.66 to open 109.47

 

AUDUSD Chart (Two-week)

 
 

Strategy: Support at 0.6721 for 0.6788
Short-term view: AUD/USD support comes in at 0.6721, MACD crossover suggests a bullish bias and RSI is above 50. Hence we see an upside to 0.6788. Below 0.6721 to open 0.6696