Asian stocks started the week on lower grounds amid rising fears of a second wave of COVID – 19 infections. Global coronavirus cases have surpassed 7.86 million and 430,500 deaths. Data from China disappointed investors. The Industrial Production came in at 4.4%, below the forecasts of 5% in May. The Retail Sales registered in at -2.8% below the expectations of -2%. The China Fixed Asset Investment came in at -6.3%, below the estimates of -5.9%.
On Friday, Wall Street rebounded after Thursday’s sharp losses. The Dow Jones was 1.90% higher at 25,605. The S&P 500 ended 1.31% higher at 3,041 while the Nasdaq finished 1.01% higher at 9,588.
The Nikkei is 3.47% lower at 21,530. The Hang Seng Index is 2.23 lower at 23,768. The Shanghai Composite index is 0.79% lower at 2,896 while the Singapore Straits Times index is 2.86% lower at 2,607.
Crude oil is also under selling pressure. Brent crude oil is 4.26% lower at 37.29 per barrel, while the WTI crude oil is 4.83% lower at 34.52.
NZDUSD correction from four-month highs as risk-off sentiment returns to markets. On the data front, the New Zealand Food Price Index dropped to -0.8% in May from the previous 1%. The Business NZ PSI came up to 37.2 in May from previous 25.9. The Visitor Arrivals declined to historic lows -99.4% in April from previous -53.6%.
On the downside, initial support stands at 0.6381 the daily low. If the sellers continue the pressure, then the next support for the pair will be met at 0.6318 the 200-day moving average. The next support area will be reached at 0.626 the low from yesterday’s June 2.
On the flip side, minor resistance for NZDUSD stands at 0.6453 the daily top. A break above would meet the next resistance at 0.6536 the high from June 11. The next hurdle for bulls stands at 0.6584 the June 10 high.