Asian indices have fallen consecutive for second following negative cues from S&P500. (Pivot Orderbook analysis)

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• Asian indices have fallen consecutive for second following negative cues from S&P500.
• BOJ’s intervention in currency markets has bewildered investors’ approach toward Japanese indices.
• Global PMIs will remain subdued amid tight monetary policy measures.

The pair currently trades last at 27027.2.

The previous day high was 27400.27 while the previous day low was 26917.07. The daily 38.2% Fib levels comes at 27101.65, expected to provide resistance. Similarly, the daily 61.8% fib level is at 27215.69, expected to provide resistance.

Markets in the Asian domain are underperforming consecutively for the second day as S&P500 is going through severe pain. The US equities especially the IT stocks are facing intense selling pressure as harsh-than-expected interest rate guidance by the Federal Reserve (Fed) on Wednesday has triggered the risk of a stagnant growth rate in the world economy.

At the press time, Japan’s Nikkei225 surrendered 0.58%, ChinaA50 eased 0.30%, and Hang Seng trimmed 0.33%. In the Asia-Pacific region, S&P/ASX200 nosedived more than 2% and DJ New Zealand plunged 1.77%.

Achieving the agenda of price stability in the US economy is resulting in a sheer decline in the growth projections and eventually in employment generation. The housing sector is becoming a major victim as higher interest rates are resulting in higher monthly installments, which are forcing them to postpone their home-purchase plans.

Japanese equities are not performing well as the Bank of Japan (BOJ)’s intervention in the currency markets has kept the bulls on the tenterhooks. The prolonged depreciating yen forced BOJ to intervene in the Fx moves as deprivation was not justifying the fundamentals. The move came after the BOJ kept the policy rate unchanged despite an acceleration in the price pressures. BOJ Governor Haruhiko Kuroda believes that the economy needs more monetary easing to contain the impact of the Covid-19 pandemic.

On the oil front, the oil prices are expected to kiss the round-level support of $80.00 sooner. Falling gasoline demand in the US economy and continuous elevation of interest rates by the western central banks are resulting in lower demand for oil.

Going forward, the release of the S&P Global PMI numbers by various G-7 nations including Germany, the US, and the UK will keep investors busy. Supply chain bottlenecks, energy crisis, and inflationary pressures have impacted economic activities in August. Therefore, the economic data is expected to remain vulnerable.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 27027.2 at the time of writing. Pair opened at 27027.2 and is trading with a change of 0.0 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 27795.91, 50 SMA 27913.36, 100 SMA @ 27329.97 and 200 SMA @ 27354.45.

The previous day high was 27400.27 while the previous day low was 26917.07. The daily 38.2% Fib levels comes at 27101.65, expected to provide resistance. Similarly, the daily 61.8% fib level is at 27215.69, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 26829.42, 26631.65, 26346.22
• Pivot resistance is noted at 27312.62, 27598.05, 27795.82

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