Nasdaq 100 Soars, however Asia-Pacific Shares Fail to Catch Up. Gold Rises

NASDAQ, ASX 200 INDEX, GOLD PRICE OUTLOOK:

• The Nasdaq Composite prolonged its record-scrapping journey, however RSI indicators overbought
• The ASX 200 Index fell on Wednesday, oscillating round a key resistance at 6,100
• Gold costs rebounded to US$ 1,930 because the US Greenback fell. Instant assist at US$ 1,910

Nasdaq 100 Index Outlook:

The Nasdaq 100 index shrugged off weaker-than-expected US consumer confidence knowledge in a single day and prolonged its record-scrapping rally. Equally, the S&P 500 index additionally hit a recent excessive. Regardless of these, the Dow Jones Industrial Common closed mildly decrease. The US indices are trying overstretched from each a valuation and a technical standpoint, rendering them susceptible to a technical pullback ought to sentiment flip bitter.

This may assist to elucidate the cautious sentiment across the Asia-Pacific inventory markets immediately, with Australia’s ASX 200 index and Singapore’s Straits Instances Index buying and selling decrease. Hong Kong’s Dangle Seng index didn’t meet up with the US rally and struggled to carry positive factors. The Shanghai and Shenzhen Composite are each in purple.

Sector-wise within the S&P 500, communication companies (+0.97%), healthcare (+0.70%) and client discretionary (+0.53%) had been doing the heavy lifting, whereas power (-1.42%), utilities (-0.92%) and supplies (-0.32%) had been lagging.

S&P 500 Index Sector efficiency 25-8-2020

Supply: Bloomberg, DailyFX

Technically, the Nasdaq 100 is driving an ascending development (chart beneath), with its 20-, 50- and 100-Day Easy Shifting Common (SMA) strains trending upward properly. The RSI indicator has additional stretched past the overbought degree of 70, suggesting robust upward momentum but in addition calling for a possible technical correction. Instant assist ranges within the Nasdaq could possibly be discovered at round 11,300 -the 20-Day Easy Shifting Common (SMA).

Nasdaq Index – Each day Chart

ASX 200 Index Outlook:

Australia’s ASX 200 inventory benchmark opened sharply decrease on Wednesday regardless of one other file session within the Wall Avenue. Asia-Pacific traders are in all probability getting more and more skeptical concerning the tech-driven rally and thus doubt its sustainability. Australia recorded 151 new Covid-19 instances over the previous 24 hours, increased than the earlier session’s variety of 121.

Technically, the ASX 200 index has retraced again to the ‘Ascending Triangle’ as proven within the chart beneath. It’s now dealing with an instantaneous resistance degree at 6,100 – the higher certain of the triangle. ‘Vary-bound’ is likely to be the established order for now.

ASX 200 Index – Each day Chart

Gold Value Outlook:

A smooth US Greenback is sending gold costs increased on Wednesday. Asia-Pacific fairness markets didn’t observe the US indices increased, signaling a ‘danger off’ sentiment that propelled treasured steel costs. The mid- to long-term prospect for gold stays bullish, underpinned byUS presidential election uncertainties, US-China commerce frictions and ultra-loose financial situations.

Technically, gold costs have possible fashioned a ‘decrease excessive’ because it failed to interrupt by way of the all-time excessive seen in early August. Its near-term momentum is prone to stay weak, making room for extra consolidation beneath the US$ 2,000 mark. Gold costs have discovered robust assist at round US$ 1,910 – the 61.8% Fibonacci retracement. An instantaneous resistance degree could possibly be discovered at round US$ 1,940 – the 50% Fibonacci retracement.

Gold Value – Each day Chart

— Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Feedback part beneath or @margaretyjy on Twitter