Asian stocks jumped higher on Monday with increased volumes, amid optimism for a fast recovery. Chinese stocks rallied after China’s Securities Times in an article pointed to a healthy bull market in equities. However rising number of new coronavirus cases might cancel hopes of a fast recovery, as the U.S. reported over 92,500 new infections during the 4th of July weekend. Robust economic data across the globe the previous week has improved investors sentiment.
On Thursday, the U.S. Nonfarm Payrolls registered in at 4,8 million, beating the market expectations of around 3 million in June. The 4.8 million new additions were the most jobs to be created in a month since the records began in 1939. The Unemployment Rate came at 11.1%, beating the consensus of 12.3%. The Average Hourly Earnings came in at 5% below the forecasts of 5.3%. In China, Services PMI came in at 58.4 beating the expectations of 49.9 in June; the May reading was at 55. Earlier this week, the Manufacturing Purchasing Manager’s Index (PMI) came in at 51.2, topping the expectations.
Nikkei 225 finished 1.83% higher at 22,714. The Shanghai Composite index jumped 5.81% at 3,336. The Singapore Straits Times index is 1.36% higher at 2,689. Hang Seng is 3.77% higher at 26,331.
NZDUSD At Monthly Highs
NZDUSD trades higher for the fifth consecutive trading session as the risk appetite returns on hopes for fast recovery in global markets. The strong rally today in Chinese equities boosted currencies in the region while the dollar is feeling the pressure. The New Zealand Commodity Price came in-0.7% below the forecast of 0% in June, but investors ignored the data and focused on the fast recovery scenario.
On the technical side, NZDUSD is 0.35% higher at 0.6553, making fresh monthly highs, and now bulls would face the first resistance at 0.6566 the daily high. If the NZDUSD bulls break above, then the next target would be at 0.6585 the top from June 10 trading session. More offers might emerge at 0.6604 the high from January 27.
On the other hand, immediate support will be met at 0.6521 the daily low. If NZDUSD breaks below, the next support stands at 0.6457 the low from July 2 trading session. More bids would emerge at 0.6389 the low from June 30.
NZDUSD Daily Chart