Asian markets ended lower as investors fear that the recession will be deeper than expected. The IMF nowpredicts that global economic output will shrink by 3% in 2020. IMF forecast in January was for 3.3% global growth. Many countries now planning to exit the total lockdown and reopen for business that will restore investors confidence.
Nikkei 225 finished 0.45% lower at 19550. The Singapore Straits Times is 0.34% lower at 2625. The Shanghai Composite is 0.55% lower at 2812, while the Hang Seng Index is 0.70% lower at 24268. ASX 200 closed down 0.39% lower at 5466.
Investors await more corporate earnings reports from the US, with Bank of America, Goldman Sachs & Citigroup releasing quarterly earnings. The US retail spending data will also be released later on the day.
NZDUSD gives up 1.23% at 0.6031 after Finance Minister Robertson said that the government is planning for more support for firms and households. The New Zealand REINZ House Price Index fell to 0.7% in March from the previous 3.1% to 0.7%. Reserve Bank of New Zealand’s in its latest meeting said that is not preparing banks for negative OCR.
On the downside, immediate support stands at 0.6026 the daily low. If the selling pressure continues, the next support will be met at 0.5983 the low from April 9. The next support zone is seen at 0.5937 the low from April 8.
On the other hand, the first resistance stands at 0.6108 the daily high. A credible break above would meet the next resistance at 0.6147 the 50-day moving average. The next level higher for bulls stands at 0.6274 the high from March 12.