HANG SENG INDEX, USD/HKD, STRAITS TIMES INDEX:Cling Seng index consolidating at key 26,000 help as US equities pull again USD/HKD
HANG SENG INDEX, USD/HKD, STRAITS TIMES INDEX:
- Cling Seng index consolidating at key 26,000 help as US equities pull again
- USD/HKD trades firmly on the 7.750 – the decrease certain of the foreign money peg
- Straits Occasions index little-moved earlier than common election, consolidating at 2,650
Cling Seng Index, HKD Outlook:
Hong Kong’s Cling Seng Index (HSI) inventory market benchmark is consolidating for a second day, discovering help at 26,000 – the 61.8% Fibonacci retracement degree. Adverse sentiment from the US in a single day is dampening threat urge for food throughout the Asia-Pacific markets, with Covid-19 virus resurgence in North America and India in focus. Australia’s Victoria state premier has re-imposed Stage three stay-at-home restrictions for six weeks, underscoring the influence of a second viral wave on financial restoration.
Sector-wise, the Cling Seng constituents are buying and selling blendedmid-day. Communication providers (+2.62%), client staples (+2.54%) and knowledge expertise (+1.41%) main the good points whereas client discretionary (-1.13%), industrials (-0.51%) have been among the many worst performers (chart beneath).
Supply: his.com.hk, DailyFX
There are talks a few potential break of the Hong Kong Greenback (HKD) buying and selling band this morning, with some White Home advisors reportedly proposing to undermine the USD/HKD foreign money peg in an effort to punish Beijing for imposing a brand new safety regulation on the town. USD/HKD was little-moved on the informationnevertheless. It’s buying and selling firmly at 7.750 – the decrease certain of the foreign money peg – as HKD stays in demand. Capital was seen to have poured into the HKD-denominated property prior to now few weeks, which partially defined the rally within the Hong Kong inventory market.
In addition to, the Hong Kong Financial Authority (HKMA) has adequate dry powder to defend the foreign money peg if wanted. The central financial institution has US$ 437 billion value of international reserves, or 121% of Hong Kong’s nominal GDP (chart beneath).
Supply: Bloomberg, DailyFX
Cling Seng Index –Technical Evaluation
Technically, HSI has damaged above a key resistance at 26,000 with sturdy quantity on Monday, and subsequently entered into consolidation. The earlier resistance is now changing into a direct help degree, and thus holding above 26,000 is important within the subsequent few days. The RSI indicator was overbought on Monday and thus steered a technical correction is probably going. The general development stays bullish because the 10-day, 50-day and 100-day Easy Shifting Averages (SMAs) have doubtless shaped a ‘Golden Cross’.
Cling Seng Index – Each day Chart
Straits Occasions Index:
Singapore’s Straits Occasions index (STI) inventory market benchmark adopted US markets decrease on Wednesday, buying and selling at 2,650 with comparatively skinny quantity. Traders are most likely sitting on the sidelines forward of a nation-wide election on Friday. As soon as the political skies clear, the inventory market will doubtless discover its personal course and begin to transfer in tandem with the remainder of Asia.
Technically, the STI is consolidating at round 2,600-2,700 with shrinking quantity. Quick help and resistance ranges might be discovered at 2,600 (38.2% Fibonacci retracement) and a pair of,725 (50% Fibonacci retracement), respectively.
Straits Occasions Index – Each day Chart
Advisable by Margaret Yang
Don’t give into despair, make a sport plan
— Written by Margaret Yang, Strategist for DailyFX.com
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