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ASX200 powers to new records, USD demand continues

jeffriess
January 22, 2020
by Joseph Jeffriess, Market Analyst

The ASX200 powers above 7140 while AUD continues its slide.

Today has been a real surprise, after what you would say was a ho-hum session in the U.S that saw indices close lower after late fightbacks. The ASX jumped out of the blocks today hitting new records during the course of the session to finish above 7135 for the first time with a 0.94% gain. Consumer Staples was today’s best performing sector adding 2.83%. Another great sign of diversity is that Materials and Financials didn’t make the top three sectors in the ASX today.

Looking at the 1-hour intraday chart we can see how driven buying was.

Other indexes in Asia saw mixed trade; the Nikkei is higher +0.57% but indexes in China remain mixed, the Hang Seng up 1.01% while the China A50 is 10 pts in the red. The current 2019-nCoV virus situation has been seen to be having a negative impact on stocks but how much influence can it be having?

The USD continues to see demand in today’s Asian session carrying over from what we saw overnight in Europe and the US sessions. The AUD has continued to be targeted by sellers today with sellers hitting new weekly lows at .6826. Since we saw that point buyers have been back in action, price currently 0.21% higher from this mornings low. The EUR and GBP have been mainly quiet to the USD so far in the session.

After a soft start risk has moved higher to the JPY with the AUD, EUR and GBP all building rallies during the day. The GBPJPY leads the gains adding 0.21%. looking at the GBPJPY daily chart we can see buyers are trying to form a point of support. While 143.00 continues to hold could we see a deeper extension develop?

Gold has remained soft today with a drop of 0.53% to its low, currently 0.35% in the red. Oil which is normally very quiet during the Asian session has 0.35% decline.

Looking forward to tonight’s European session will we see risk currencies fightback to the USD? Will the current rallies to the JPY continue? Based on the ASX today and late session buy ups on the Nasdaq and SPX last night spark buying in Europe? European indexs cut losses late in the session last night with the DAX finishing in the green. The current EU index futures are mixed at this point;

DAX +0.73% FTSE +0.52% CAC -0.81% (data from investing.com)

Datawise its light into the EU and LON session with CAD CPI and BOC rates decision to come out early Thursday morning.

Good trading from Eightcap.
All times are AEDT.