Market Brief: Asian Stocks Higher, NZDUSD At Two-Week Lows

Asian stocks ended mostly higher as investors reassessing the possibilities of a second wave of coronavirus and the mixed economic data trying to estimate what will be the path of the economic recovery. New record numbers of infections in California and Texas and a new round of confirmed cases in Beijing might halt the recovery.

The U.S. Philadelphia Fed Manufacturing Survey came in at 27.5 topping the expectations of -23 in June and recovering from -43.1 in May. The current new orders index increased 42 points to 16.7, while the shipments index rose 56 points to 25.3. Jobless claims totalled 1.5 million last week, above the consensus expectations of 1.3 million. The weekly jobless claims stayed above 1 million for the 13th consecutive week as the coronavirus crisis continues to hit the U.S. economy.

The Australia Retail Sales seasonally adjusted came in at 16.3% well above the previous reading of -17.7%. The Japan National Consumer Price Index registered in at 0.1% in line with forecasts for May.

In Asian markets today, Nikkei ended 0.55% higher at 22,478. The Hang Seng Index is 1.05% higher at 24,720. The Shanghai Composite index is 0.96% higher at 2,967, while the Singapore Straits Times index is 0.63% lower at 2,649.

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NZDUSD At Two-Week Lows

NZDUSD continues lower for the fourth consecutive trading session as the correction from recent highs continues but now showing some signs of exhaustion. New Zealand’s economy contracted by 1.6% in the first quarter, marking the largest drop in 29 years and the first quarterly contraction since December 2010, amid the coronavirus crisis lockdown.

On the technical side, NZDUSD is 0.14% lower at 0.6419, making fresh two week lows. On the downside, first support will be met at 0.6406 the daily low. In case, the NZDUSD breaks below the next support stand at 0.6378 the low from June 15 trading session. More bids would emerge at 0.6319 the 200-day moving average.

On the flip side, the initial resistance for NZDUSD stands at 0.6438 the daily high. If the bulls break above, then the next target would be at 0.6478 the high from yesterday’s trading session. More offers might emerge at 0.6507 the high from June 16.

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