China shares lead the way upwards, again

 

Risk appetite stirred by equity gains

Chinese equities caught a bid today in today’s Asian session after the negative day yesterday, though there was no specific news that prompted the shift in sentiment. The gains were not quite enough to fully recoup yesterday’s losses, but gains of almost 1.7% on the day were enough to promote better risk sentiment across markets. The US30 index pared early losses to sit 0.1% in the black, while the NAS100 index rose 0.44%.

The better sentiment filtered through to currency markets as well, with the Aussie climbing 0.23% and the yen retreating 0.12% versus the US dollar. In the broader market, the dollar was pegged lower versus a basket of six major currencies.

 

Asia Market update: China risk and oil update

 

Gold’s rally testing Fibonacci resistance

Gold’s solid gains halted at the 1,239.88 level yesterday, the highest level in more than three months, before closing lower. Yesterday’s peak was close to the 38.2% Fibonacci retracement level of the April 11 to August 16 drop at 1,238.60. The slightly weaker US dollar today is lifting gold higher again and the metal could mount a retest of the resistance point. Gold is currently holding at 1,232.12, just below the 200-week moving average at 1,234.79.

 

Gold Daily Chart

Source: OANDA fxTrade

 

Markit PMIs and Fed speakers on tap

The main events on today’s data calendar are the releases of flash Markit PMI readings for Germany, the Euro-zone and the US. Survey estimates show a similar picture across all releases, with a slightly lower reading expected than last month. Germany’s is expected to slip to 53.4 from 53.7, Euro-zone to 53.0 from 53.2 and the US one from 55.6 to 55.5.

We also have three Fed speakers on tap: Bullard, Bostic and Mester. The Bank of Canada announces its interest rate decision with the majority of economists expecting a 25bps hike to 1.75%.

The full MarketPulse data calendar is available at: https://www.marketpulse.com/economic-events/

 

Source: MarketPulse

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Andrew Robinson

Andrew Robinson

Senior Market Analyst at MarketPulse
A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentary and live market analysis throughout the Asia-Pacific region. Having previously worked in Europe, since moving to Singapore he worked with several leading institutions including Bloomberg, Saxo Capital Markets and Informa Global Markets, proving FX strategies based on a combination of technical and fundamental analysis as well as market flow information. Andrew began his career as an FX dealer with NatWest and the Royal Bank of Scotland in the UK.