Hong Kong shares slide after weekend violence

 

Index snaps a two-day streak

In an otherwise rather dull Asian morning session today, the biggest mover was the HongKong33 index which struggled after another flare-up at protests during the weekend. While most other indices benefitted from the latest move on Wall Street to record levels, the local index slid 0.38% to 28,961, after earlier touching the highest since May 8 last year. Today’s move snapped a two-day winning streak and could mark the 29,200 mark as a crucial resistance level.

 

HK33 Daily Chart

Source: OANDA fxTrade

 

Currencies steady

With US markets closed later today for Martin Luther King Day, and China markets having one eye on the Lunar New Year holidays starting at the end of the week, activity in the markets was quite muted, especially so in the currency markets.

EUR/USD traded 0.08% higher while the Australian dollar out-performed with gains of 0.14% versus the US dollar and 0.16% versus the Japanese yen. AUD/USD has snapped a two-day losing streak and rebounded ahead of the 55-day moving average at 0.6868.

 

AUD/USD Daily Chart

Source: OANDA fxTrade

 

A sparse calendar

It’s a slow start to the week on the data front with Japan’s industrial production and capacity utilization data for November the major event left. These are final readings for the month and the provisional ones showed a 0.9% m/m decline and a 4.5% drop, respectively

German producer prices probably rose 0.1% m/m in December, a marginal increase from the flat reading the previous month.

 

The full Market Pulse data calendar can be viewed at https://www.marketpulse.com/economic-events/

 

 

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.