Daily News – 19 Feb 2020

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By: Andria Pichidi

China is considering additional stimulus measures to support the economy. (Note: China sold the whole of 2019 around USD54.4bn of USTs – To take their holdings to around 1.07 trillion now )
RBA Feb meeting minutes, still calling an April rate cut but cautious on further RBA dithering
Japan data – exports less bad than feared, machinery orders dropped
Stock markets slightly higher – Nikkei recovers 0.9% after drift after ( Apple highlighting the negative impact of the virus outbreak on supply and sales) – Shanghai Comp down -0.2%
US and European futures up – DAX and FTSE 100 futures are up 0.6% and 0.7% respectively and
U.S. futures are posting gains of around 0.3%.
Equities remain under downward pressure amid ongoing worries that the Covid-19 virus will have a sizable negative impact on global growth.
Gold and Yen both on the rise – (once again) coronavirus related – A jump in cases in South Korea, 15 new cases take the total in the country to 46

USD remains on BID – USD Index – consolidating around 99.25-99.37
JPY – lifted to 110.13, breaks month’s Resistance -Risk mood supportive– Next key level is January’s peak at 110.28. PP at 109.85
EUR –at 1.08 below PP, S1 – 1.0771 and R1: 1.0823 – below 161.8Fib extension of the January drift, hence next key level at 200FE 1.0740
GBP – choppy, below 1.3000, neutral between 1.2985-1.3000
AUD – on bid above PP, at 0.6698, R1 0.6710 (wages data for Q4, once again confirming slow wage
growth)
CAD – Sharp Slap in EU open, fell below at S1: 1.3200-1.3220

BTC – Holds support above 20-DMA – PP 9956, R1: 10504 – Safe Haven trading again??

Gold – peaked at 1605.78 today – R1 1610, PP 15796.30 (outside BB – overbought?)
Oil – after the dip, a modest recovery follow above 20-DMA and R1 at 52.60. Currently at 52.80 with next resistance area at 53.00 – 53.35

TODAY – UK retail price and inflation data, which comes on the heels of yesterday’s lower than expected earnings growth. The Eurozone has the current account US has building Permits and FOMC Minutes later on, whilst Canada reports its inflation data as well.

Biggest FX Mover (07:30) GMT so far this week – USDJPY and XAUUSD


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