Asian stocks are displaying a mixed performance as the focus shifts to interest rate policies. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• Asian stocks are displaying a mixed performance as the focus shifts to interest rate policies.
• Bumper retail sales have strengthened the Chinese equities.
• Dovish Japan will conclude sooner and a neutral approach will be triggered.

The pair currently trades last at 27538.08.

The previous day high was 27650.82 while the previous day low was 27433.34. The daily 38.2% Fib levels comes at 27516.42, expected to provide support. Similarly, the daily 61.8% fib level is at 27567.74, expected to provide resistance.

Markets in the Asian domain are displaying a mixed performance ahead of a volatile week, which will be full of surprises led by interest rate announcements from various central banks. But the risk tone has turned dirty as US President Joe Biden says the US military would defend Taiwan in the event of an invasion by China.

At the press time, Japan’s Nikkei225 tumbled 1.11%, Hang Seng surrendered 1.07% while China A50 jumped 0.88%.

The week is going to bewilder the market participants as the People’s Bank of China (PBOC), Federal Reserve (Fed), Bank of Japan (BOJ), Bank of England (BOE), and Swiss National Bank (SNB) will announce their interest rate decisions.

Chinese equities have defended the downside and are advancing after upbeat Retail Sales data. The economic data has landed at 5.4%, higher than the expectations of 3.5% and the prior release of 2.7%. A release of upbeat Retail Sales data in times when the inflation rate is dropping in the Chinese economy indicates that the retail demand has remained extremely robust. The pattern is expected to continue further as the respective administration has already announced stimulus packages to spurt the growth rate.

Japanese markets are facing the heat ahead of BOJ policy. The central bank is expected to shift its prolonged ultra-dovish monetary policy stance to neutral to support the depreciating yen. The highlight of a depreciating yen has already created havoc for investors investing in Japanese equities. Companies that are highly dependent on global inputs are forced to make higher payouts.

On the oil front, oil prices have slipped below the critical support of $85.00. The black gold is expected to witness severe heat amid a bleak growth outlook globally. As world central banks are gearing up for a fresh rate hike cycle, oil prices have started moving towards the south.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 27538.08 at the time of writing. Pair opened at 27538.08 and is trading with a change of 0.0 % .

The pair is trading below its 20 Daily moving average @ 28032.9, below its 50 Daily moving average @ 27856.42 , above its 100 Daily moving average @ 27315.34 and above its 200 Daily moving average @ 27377.7

The previous day high was 27650.82 while the previous day low was 27433.34. The daily 38.2% Fib levels comes at 27516.42, expected to provide support. Similarly, the daily 61.8% fib level is at 27567.74, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 27430.67, 27323.27, 27213.19
• Pivot resistance is noted at 27648.15, 27758.23, 27865.63

[/s2If]
Join Our Telegram Group