Asian stocks finished higher for the third consecutive session with Nikkei 225 breaching emphatically above the 50-day moving average on optimism that the economy across the globe will return back to normal sooner than expected. Positive results from a coronavirus treatment remdesivir produced from Gilead boost investors sentiment.
Federal Reserve kept the interest rate unchanged at 0%-0.25%. Jerome Powel noted that the Fed is going to be very patient and in no hurry to raise rates. Analysts now expect that the FOMC will keep the interest rate to current levels through at least the end of 2021.
Investors await the ECB decision later today with expectations to keep the interest rates unchanged and expand the bond-buying program as the 27 EU leaders failed to reach an agreement of a common relief package.
Nikkei 225 finished 2.43% higher at 20,252 to seven-week highs. The Japan April Consumer Confidence Index dropped at 21.6 in April, from 30.9 in March. The Singapore Straits Times is 2.13% higher at 2,629. The Shanghai Composite is 1.32% higher at 2,859, while the Hang Seng Index is 0.28% higher at 24,643. The Aussie ASX 200 index is higher for the fourth time in the last five days at 5,461.
On the economic calendar, the main event is the US Jobless Claims with expectations to recover from 4,427K to 3,500K.
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AUDUSD Bullish Momentum Above 50-day MA
AUDUSD rallies for the seventh consecutive trading day as the momentum accelerated above the 50-day moving average. The AUDUSD pair makes higher highs and higher lows as the third positive wave after the March lows. Today the pair is testing the critical 100-day moving average which if breached will put bulls in the driver’s seat.
On the upside, the first resistance for AUDUSD stands at 0.6570 the daily top. Above the 0.6570 resistance level, the next target will be at 0.6616 the high from March 10. More selling pressure would emerge at 0.6686 the 200-day moving average.
On the other side, immediate support for the pair stands at 0.6529 the daily low. Next support will be met at 0.6484 the low from yesterday’s trading session. A break below might test the low from April 27 at 0.6386.
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