Asian markets are trading lower on Thursday, mirroring the sharp losses in Wall Street. Three states in the USA reported record highs cases, while New York ordered travellers from other states to quarantine. The rising number of infections would not push the administration to a new lockdown, but we might see some safety measures locally. It might also slow down the reopening process in many economies.
The International Monetary Fund (IMF) revised it’s forecast for the global economy, and now expects a deeper global recession, with global GDP contraction at 4.9% in 2020, well below than the 3.0% contraction predicted in April.
Investors today will focus on the U.S. Jobless claims and durable good orders, while the Bank of Mexico will announce the interest rate decision. Here you can read what to expect today from the Central Bank of Mexico: USDMXN: Banxico Preview
Nikkei ended 1.09% lower at 22,291. The Singapore Straits Times index is 1.26% lower at 2,595. In Australia, the ASX 200 is 2.03% lower at 5,844.
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AUDUSD Rebound From One Week Lows
AUDUSD trades lower for second consecutive after weaker than expected job vacancies in Australia. The job vacancies plunged 43% for the three months to May, marking the largest fall in history. Vacancies drop sharply in the Arts and Entertainment services with accommodation and food services also down dramatically.
On the technical side, the first support for AUDUSD stands at 0.6850 the daily low. Below 0.6850 the next target will be at 0.6810 the low from June 22 trading session. Next support area would emerge at 0.6665 the 200-day SMA.
On the flip side, initial resistance for AUDUSD stands at 0.6877 the daily top. Next hurdle will be met at 0.6961 the high from yesterday trading session. The next supply zone is at 0.7004 the high from June 11.
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