Daily Markets Broadcast 2020-03-02

Daily Markets Broadcast


The rout continues after only a brief reprieve

Friday’s Wall Street rebound was wiped out, and more, in early trading this morning as virus cases continue to increase and China released very weak PMI data at the weekend.


US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index has hit the lowest since June last year since the open, falling for the seventh day out of eight
  • The next possible technical support level is the June 2019 low of 24,604
  • The US PMI data for February are due today and surveys suggest a slight weakening to 50.5 from 50.9 for the manufacturing sector. It’s unlikely to collapse like the China version since the impact of CoVid-19 has not been so great.


DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index looks set to extend the recent losing streak to an eighth day today amid virus and global growth fears
  • The index touched the lowest since August 29 on Friday and posted the biggest weekly loss since the October 2008 crash
  • The final Markit manufacturing PMI readings for Germany and the Euro-zone are due today. Provisional estimates were 47.8 and 49.1, respectively.


CN50USD Daily Chart

Source: OANDA fxTrade

  • The China50 index slumped to the lowest level since February 4 on Friday and it would be prudent to assume it could trade weaker today after very poor PMI data was released at the weekend
  • The index tested below the 61.8% Fibonacci retracement of the February 3-20 rally at 13,239 on Friday, but failed to close below it
  • China’s manufacturing PMI slumped to 35.7 in February, the height of the CoVid-19 outbreak, from 50.0 in January and well below forecasts of a 46.0 print. The non-manufacturing PMI fell to 29.6 from 54.1. The Caixin manufacturing version is due this morning and is likely to show the same trend.



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.
Andrew Robinson

Latest posts by Andrew Robinson (see all)