Market Brief: Asian Markets Higher On Better China Manufacturing Data – NZDUSD Slides

Asian stocks managed to rebound today as investors shift their attention to economic data, leaving behind the rising number of new coronavirus infections.

Wall Street ended on positive foot yesterday, supported by better housing data. The United States Pending Home Sales registered in at 44.3%, beating the forecasts of 19.7% in May. The yearly reading for Pending Home Sales reported at -5.1%, also above the expectations of -44.6%. The Dallas Fed Manufacturing Index recovered to -6.1 in June beating the expectations of -59.

The China manufacturing purchasing managers’ index (PMI) rose to 50.9, up from 50.6 in May, and better than economists expectations of 50.4. The non-manufacturing PMI rose to 54.4, better than expectations of 53.6.

Nikkei ended 1.33% higher at 22,288. The Japan Unemployment Rate came in at 2.9%, above expectations of 2.8% in May. The Industrial Production came in at -8.4%, below the forecasts of -5.6%.

The Shanghai Composite index is 0.65% higher at 2,980. The Singapore Straits Times index is 0.84% higher at 2,595. Hang Seng is 0.25% higher at 24,357. The ASX 200 is 1.62% higher at 5,909 marking the third straight month of gains.

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NZDUSD Slides Despite Better Business Confidence

NZDUSD trades lower for the third consecutive session as the correction from June 10 highs continues. The New Zealand Business Confidence increased to -34.4 in June from previous -41.8, while the Activity Outlook climbed from previous -38.7% to -25.9% in June. A strong rebound after the lockdown is evident in the data. Reserve Bank’s Yuong Ha reaffirmed the guidance set in March on keeping the OCR unchanged until March 2021. 

On the technical side, NZDUSD is 0.25% lower at 0.6404, and the sellers look like they are running out of steam. On the downside, initial support for NZDUSD will be met at 0.6396 the daily low. In case, the NZDUSD breaks below the next support stand at 0.6357 the low from June 3 trading session. More bids would emerge at 0.6322 the 200-day moving average. 

On the contrary, the initial resistance for NZDUSD stands at 0.643 the daily high. If the bulls break above, the next target for NZDUSD would be at 0.6451 the high from June 26 trading session. More offers might emerge at 0.6515 the high from June 24. 

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