Asian Stock Market: Indices rebound as DXY weakens, China’s growth in trouble, oil near $75.00 (Pivot Orderbook analysis)

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The pair currently trades last at 26602.76.

The previous day high was 26738.36 while the previous day low was 26480.18. The daily 38.2% Fib levels comes at 26639.74, expected to provide resistance. Similarly, the daily 61.8% fib level is at 26578.8, expected to provide support.

Markets in the Asian domain have rebounded as the US dollar index (DXY) has weakened after failing to sustain above the critical hurdle of 115.00. The DXY is witnessing pressure amid lower consensus for the US Durable Goods Orders data. As per the preliminary estimates, the apparels durables data will tumble by 1.1%.

At the press time, Japan’s Nikkei225 gained 0.50%, ChinaA50 added 0.27% while Hang Seng dropped more than 1%.

Chinese equities are getting support despite a decline in the growth projections by the World Bank. The giant lender believes that China’s longer zero-tolerance approach towards Covid-19 and the real estate crisis have trimmed its growth rate. Demand for steel, base metals, cement, and other building materials has declined firmly. Also, the eastern developing economies will perform better as much business will shift to them.

In today’s session, the US Durable Goods Orders data will be of utmost importance. The economic data will remain subdued as higher interest rates by the Federal Reserve (Fed) and soaring core Consumer Price Index (CPI) numbers have forced individuals to postpone their current purchasing plans.

Meanwhile, the Bank of Japan (BOJ) has announced an unscheduled bond-buying program. The central bank is offering to buy JPY 250 billion worth of Japanese Government Bonds (JGBs).

On the oil front, oil prices have displayed a less-confident rebound after dropping to nearly $75.00. The pullback move seems a result of a subdued performance by the DXY. The oil prices will continue to remain on the tenterhooks as fears of the global recession are skyrocketing.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 26602.76 at the time of writing. Pair opened at 26602.76 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 @ 27642.78, 50 SMA 27913.05, 100 SMA @ 27320.51 and 200 SMA @ 27331.93.

The previous day high was 26738.36 while the previous day low was 26480.18. The daily 38.2% Fib levels comes at 26639.74, expected to provide resistance. Similarly, the daily 61.8% fib level is at 26578.8, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 26475.84, 26348.92, 26217.66
• Pivot resistance is noted at 26734.02, 26865.28, 26992.2

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