Virus Slowdown and Chinese Trade Data Support Sentiment

Asian Equities Gain on Virus Slowdown and China’s Trade Data

The dollar traded lower against all but two of the other G10 currencies on Monday and during the Asian morning Tuesday. The main gainers were AUD, NZD and GBP in that order, while the only losers were NOK and SEK. The greenback lost the least ground against EUR, CHF and JPY.

Nikkei 225 — Technical Outlook

This morning, we are seeing that Nikkei 225 is flirting with its key resistance barrier, at 19633, which marks the highs of March 25 thand April 5 th. If, eventually, the index moves strongly above that barrier and stays above it, this could invite more bulls into the arena. In addition to that, as long as the price continues to balance above its short-term tentative upside support line drawn from the low of March 22 nd, there is a good chance Nikkei 225 might stay attractive for some buyers. For now, we will remain positive with the near-term outlook.

AUD/JPY — Technical Outlook

AUD/JPY continues to slowly grind higher, while trading above a short-term upside support line taken from the low of March 19 th. This morning, the pair also managed to break above its key resistance barrier, at 69.00, this way forming a higher high. As long as the rate remains above the above-discussed upside line, we will stick to the positive scenario.

As for the Rest of Today’s Events

The only releases worth mentioning on today’s calendar are the US NFIB small business optimism index for March and the API (American Petroleum Institute) weekly report on crude oil inventories. There is no forecast for those releases, but due to the pandemic fast-spreading in the US during March, we see the risks surrounding the NFIB index as tilted to the downside. Just for the record, February’s print was at 104.5.

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