News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • 🇮🇹 Government Budget (2020) Actual: -9.5% Previous: -1.6% https://www.dailyfx.com/economic-calendar#2021-03-01
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/2v3F0jycr9
  • 🇮🇹 Full Year GDP Growth (2020) Actual: -8.9% Previous: 0.3% https://www.dailyfx.com/economic-calendar#2021-03-01
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 1.88% France 40: 1.65% Germany 30: 1.32% US 500: 1.21% Wall Street: 1.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/b4rnm5vtE1
  • Heads Up:🇮🇹 Full Year GDP Growth (2020) due at 11:00 GMT (15min) Previous: 0.3% https://www.dailyfx.com/economic-calendar#2021-03-01
  • Heads Up:🇮🇹 Government Budget (2020) due at 11:00 GMT (15min) Previous: -1.6% https://www.dailyfx.com/economic-calendar#2021-03-01
  • Fed's Barkin says would be disappointed if we didn't see bond yields rise as the outlook improves - WSJ
  • What are some factors affecting the USD this quarter? Get your free forecast here: https://t.co/7G7pWntiyY #DailyFXGuides https://t.co/yxnbYVF3T6
  • 🇮🇹 Inflation Rate YoY Prel (FEB) Actual: 0.6% Previous: 0.4% https://www.dailyfx.com/economic-calendar#2021-03-01
  • Thanks as always @JeremyNaylor_IG https://t.co/WALxUC2Ug8
Most Asian Shares Rise, Sentiment Better. ASX 200 Tests Breakout

Most Asian Shares Rise, Sentiment Better. ASX 200 Tests Breakout

Daniel Dubrovsky, Strategist

Asian Stocks Talking Points:

  • Most Asian shares recover as trade war worries settled down, anti-risk Yen fell
  • Next, markets eye a central bank panel with commentary from important officials
  • ASX 200 is testing a breakout, opening the door to a resumption of its uptrend

Just getting started trading equities? See our beginners’ guide for FX traders to learn how you can apply this in your strategy!

As expected, Asian shares took a breather from yesterday’s aggressive selloff which was sparked by increased trade tensions between the US and China. A lack of updates as traders await further escalation allowed some stock markets to consolidate.

BACKGROUND: A Brief History of Trade Wars, 1900-Present

In Japan, the Nikkei 225 rose more than 0.30 percent by Wednesday afternoon trade. Most of the gains were from the telecommunication services and health care sectors. Chinese shares were held down though with the Shanghai Composite falling about 0.60 percent. Australia’s ASX 200 climbed, pushed higher by financials and information technology. The KOSPI pulled ahead, rising more than one percent.

On the FX side of things, the lull in trade war rhetoric diminished demand for safe havens. The anti-risk Japanese Yen was cautiously lower while the sentiment-linked Australian and New Zealand Dollars appreciated.

From here, aside from updates on tariff retaliations, all eyes will be on a central bank policy panel that takes place in Sintra, Portugal. We will get commentary from Fed’s Jerome Powell, ECB’s Mario Draghi, RBA’s Philip Lowe and BoJ’s Haruhiko Kuroda.

Amidst last week’s monetary policy announcements from the Fed and ECB, speeches from Mr. Powell and Mr. Draghi can arguably have more potential for FX volatility. If the Fed Chair reiterates last week’s hawkish tone while the ECB President sticks to a more dovish one, then we may see some US Dollar gains at the expense of its European counterpart.

ASX 200 Technical Analysis: More Gains Ahead?

On a daily chart, Australia’s ASX 200 was stuck right below immediate horizontal resistance levels as of Tuesday’s close. These are a combination of the January, May and current June highs between 6,158 and 6,149. However, as of today’s cooldown in trade war fears, the index is attempting a push to the upside for a new 2018 high.

This opens the door to more gains in the coming days as the ASX 200 resumes its uptrend from early April. From here, a push above resistance exposes the 50 percent midpoint of the Fibonacci extension at 6,202 followed by the 61.8% level at 6,264. On the other hand, a turn below if resistance holds places the 23.6% extension as the first target at 6,064. Under that, the index faces a near-term rising support channel going back to late-May.

ASX 200 Daily Chart: Breakout on Ebbing Trade War Worries?

ASX 200 and other equities Trading Resources:

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES