Market Brief: Asian Stocks Mixed, AUDUSD Hit Yearly Highs And Retreat

Asian stocks trading mixed as the bullish momentum push risky assets to March highs as the recent economic data point to a fast global recovery. Better unemployment data in the USA support sentiment and Nasdaq hit a record close as New York reopened businesses. Relief packages and interventions from central banks have helped the economies to recover while the Feds easing of the Main Street lending program will also boost the local economies.

In Japan, the Machine Tool Orders fell to -52.8% in May from previous -48.3%.

Dow Jones finished 1.75% higher at 27.572, the S&P 500 finished 1.20% higher at 3.232, while Nasdaq was 1.13% higher at 9.924.

The Nikkei 225 finished 0.38% higher at 23,091. The Hang Seng Index is 1.70% higher at 25,193. The Shanghai Composite index is 0.38% higher at 2,949. The Singapore Straits Times index is 1.29% higher at 2,832. Aussie stocks are higher for the sixth consecutive trading session which makes it the longest winning streak since October. ASX 200 is 2.31% higher at 6,137.

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AUDUSD Hits Yearly Highs

AUDUSD retreat today after eight consecutive days of gains. Australia’s Business Confidence came in at -20, topping the expectations of -32 in May. The Business Conditions registered in at -24, below the forecasts of -16. The ANZ Job Advertisements came up to 0.5% in May from the previous -53.1%. 

The technical outlook is bullish as the pair continues making higher highs and higher lows. However, the RSI index is in overbought conditions, and a correction is a possible scenario.  

On the downside, the initial support for AUDUSD stands at 0.6947 the daily low. Below 0.6947 the next target will be at 0.6889 the low from June 4 trading session. Next support area would emerge at 0.6769 the low from June 2. 

On the other side, immediate resistance for AUDUSD stands at 0.7042 the daily high. Next hurdle will be met at 0.7065 the high from July 22.  

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