Asian stocks trading mixed as traders follow the news about the rising number of new coronavirus and turn their attention to safe-haven assets such as gold which is approaching the 1,800 mark. Investors book some gains off the table after the recent rally in global equities. Wall Street ended lower breaking a five-day winning streak.
President of the Atlanta, Federal Reserve Bank, Raphael Bostic warned that the U.S. economic rebound might stall as a result of the coronavirus outbreak, which has led to new restriction measures in some states.
On the trade war front between China and USA, the U.S.U.S. will impose visa restrictions on some Chinese officials over Tibet, while the proposals to undermine the Hong Kong dollar peg is also weighed on the markets.
Nikkei 225 finished 0.78% lower at 22,438. The Japan Eco Watchers Survey Current registered in at 38.8, beating the forecasts of 21.1 in June while the Outlook came in at 44, also above the estimates of 24.1.
The Shanghai Composite index continues higher, adding 1.71% today at 3,402. The Singapore Straits Times index is 0.18% higher at 2,666. Hang Seng is 0.38% higher at 26,066.
AUDUSD Stalled At Monthly Highs
AUDUSD has stalled at monthly highs as the new coronavirus infections rise in the country while the state of Victoria is considering a four weeks lockdown. Cautious tone form RBA also weighs on the Australian dollar. Reserve Bank of Australia kept interest rates unchanged at 0.25% matching analyst’s expectations. The central bank has cut 17 times the interest rates since November 2011 with the interest rate reduced from 4.75%. The central bank noted that the outlook remains uncertain and the recovery is expected to be bumpy, but the conditions have stabilised recently
On the technical side, first resistance for AUDUSD stands at 0.6950 the daily high. Next hurdle will be met at 0.7001 the monthly high from yesterday trading session. The next supply zone is at 0.7065 the high from June 10.
On the other side, the first support for AUDUSD stands at 0.6927 the daily low. Below 0.6927 the next target will be at 0.6872 the low from July 1 trading session. Next support area would emerge at 0.6806 the low from June 22.
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AUDUSD Daily Chart
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