Asian markets are displaying a mixed response to volatile DXY. (Pivot Orderbook analysis)

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• Asian markets are displaying a mixed response to volatile DXY.
• Japanese Overall household spending has declined to 3.4% vs. the forecast of 4.2%.
• Oil prices have corrected after failing to sustain above $90.00

The pair currently trades last at 27687.03.

The previous day high was 27797.72 while the previous day low was 27549.4. The daily 38.2% Fib levels comes at 27702.86, expected to provide resistance. Similarly, the daily 61.8% fib level is at 27644.26, expected to provide support.

Markets in the Asian domain are displaying a mixed performance as the US dollar index (DXY) has turned volatile ahead of the US ISM Services PMI data. The US markets will open after an extended weekend, therefore, wild gyrations are highly expected. The Services PMI is expected to land lower at 55.5 vs. 56.7 in the prior release.

At the press time, Japan’s Nikkei225 remained flat, China A50 added 0.16%, Hang Seng shed 0.52% and Nifty50 eased 0.34%.

Japanese markets have not reacted much to a decline in the Overall Household Spending data. The economic data has landed at 3.4%, lower than the expectations of 4.2% and the prior release of 3.5%. This indicates households’ pessimism in the Japanese economy and also lower expenditure by the former may restrict the inflation rate. It is highly likely that investors will have to wait more for a ‘neutral’ stance by the Bank of Japan (BOJ).

Outside Asia, the Reserve Bank of Australia (RBA) has announced a rate hike by 50 basis points (bps) consecutively for the fourth time. Officially, the RBA’s Official Cash Rate (OCR) has increased to 2.35%. As price pressures are accelerating dramatically in the Australian economy and households are facing the headwinds of higher payouts, a rate hike decision by the RBA was highly expected.

On the oil front, oil prices have failed to extend recovery after a vertical upside move to near $90.00. The black gold has witnessed a corrective move despite the announcement of production cuts by OPEC. In order to tame the recent decline in oil prices, the oil cartel has squeezed supply. To be noted, OPEC has announced production cuts by 100,000 barrels per day (bpd).

Technical Levels: Supports and Resistances

XTIUSD currently trading at 27687.03 at the time of writing. Pair opened at 27793.15 and is trading with a change of -0.38 % .

The pair is trading below its 20 Daily moving average @ 28349.95, above its 50 Daily moving average @ 27549.49 , above its 100 Daily moving average @ 27203.19 and above its 200 Daily moving average @ 27404.74

The previous day high was 27797.72 while the previous day low was 27549.4. The daily 38.2% Fib levels comes at 27702.86, expected to provide resistance. Similarly, the daily 61.8% fib level is at 27644.26, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 27629.13, 27465.1, 27380.81
• Pivot resistance is noted at 27877.45, 27961.74, 28125.77

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