ASIA STOCKS: Asian Equities Head Higher As US-China Tensions Ease
Asian markets traded higher today, driven by optimism over easing US-China tensions following a positive call between Donald Trump and Xi Jinping. The MSCI Asia Pacific Index rose 1.2%, with notable gains in Hong Kong, where the Hang Seng Index climbed 2.3%, and mainland Chinese shares also advanced. Japanese stocks rebounded, with the Topix Index posting its biggest intraday jump since early December, as tech and financial shares gained on expectations of a potential Bank of Japan rate hike. Broader sentiment was supported by hopes for improved US-China trade relations, though concerns about Trump's upcoming policies, including tariffs and deregulation, tempered enthusiasm.
- South Korean equities have struggled today with political uncertainty seen as the major driver, the KOSPI last trades 0.20% lower. Foreign investors had been better buyers of South Korean equities to kick the year off, however we another day of over $200m of outflows we are now effectively flat in terms of net flows.
- Indian equities have seen heavy outflows totaling $4.5b to start the year, the Nifty 50 is trading up 0.20% today as earnings season kicks off.
- Equities in Australia & New Zealand have been mixed today, the ASX20 trades up 0.45%, while the NZX 50 closed 0.30% lower.
- US equity futures are trading slightly lower in Asia Today, please note there will be no cash equity trading tonight for Martin Luther King Day. Focus will be largely on the Inauguration of Trump and any executive orders he may sign on Day 1.
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TRUDEAU SAYS `WE HAVE A LOT OF WORK TO DO'
- TRUDEAU SAYS `WE HAVE A LOT OF WORK TO DO'
- TRUDEAU WANTS GOVT TO PREPARE FOR NEW US ADMINISTRATION
- TRUDEAU DOESN'T ADDRESS QUESTIONS ABOUT HIS LEADERSHIP
USDCAD TECHS: A Pullback Would Be Considered Corrective
- RES 4: 1.4539 3.382 proj of the Oct 17 - Nov 1 - 6 price swing
- RES 3: 1.4537 2.0% 10-dma envelope
- RES 2: 1.4508 3.236 proj of the Oct 17 - Nov 1 - 6 price swing
- RES 1: 1.4467 High Dec 19
- PRICE: 1.4356 @ 16:56 GMT Dec 20
- SUP 1: 1.4301 Low Dec 18
- SUP 2: 1.4174/4014 20- and 50-day EMA values
- SUP 3: 1.3928 Low Nov 25 and a key support
- SUP 4: 1.3822 Low Nov 6
USDCAD bulls remain in the driver’s seat. While price faded into the Thursday close, the recent breach of 1.4178, the Nov 26 high, confirmed a resumption of the uptrend and this maintains the price sequence of higher highs and higher lows. The latest rally opens 1.4508 next, a Fibonacci projection level. Initial firm support to watch lies at 1.4174, the 20-day EMA. A pullback would be considered corrective.
AUDUSD TECHS: Bearish Trend Structure
- RES 4: 0.6550 High Nov 25
- RES 3: 0.6501 50-day EMA
- RES 2: 0.6429 High Dec 12
- RES 1: 0.6337/6396 Low Dec 11 / 20-day EMA
- PRICE: 0.6263 @ 16:55 GMT Dec 20
- SUP 1: 0.6199 Low Dec 19
- SUP 3: 0.6158 1.236 proj of the Sep 30 - Nov 6 - 7 price swing
- SUP 3: 0.6100 Round number support
- SUP 4: 0.6045 1.500 proj of the Sep 30 - Nov 6 - 7 price swing
The trend needle in AUDUSD continues to point south and this week’s fresh cycle lows and Wednesday’s sell-off, reinforce a bear theme. The move down maintains the price sequence of lower lows and lower highs. Note that moving average studies are in a bear-mode position too, highlighting a dominant downtrend. The break lower opens 0.6158 next, a Fibonacci projection. Initial firm resistance to watch is 0.6396, the 20-day EMA.
