Asian stocks are demonstrating a subdued performance amid soaring fears of a mild recession in the US. (Pivot Orderbook analysis)

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• Asian stocks are demonstrating a subdued performance amid soaring fears of a mild recession in the US.
• Chinese stocks are facing pressure despite the release of upbeat international data.
• Oil prices have turned sideways around $83.00 after the release of a mild build-up of oil inventories.

The pair currently trades last at 27936.1.

The previous day high was 28221.28 while the previous day low was 27893.92. The daily 38.2% Fib levels comes at 28018.97, expected to provide resistance. Similarly, the daily 61.8% fib level is at 28096.23, expected to provide resistance.

Markets in the Asian domain are showing a subdued performance after observing weak cues from United States markets. S&P500 settled Wednesday’s session on a bearish note as US core inflation rebounded to 5.6% from the former release of 5.5% due to persistent rent prices and signals of mild recession from the Federal Reserve’s (Fed) minutes of the May monetary policy meeting.

Fed minutes conveyed that policymakers are anticipating a mild recession later this year due to the banking crisis and higher interest rates.

The US Dollar Index (DXY) has shown a recovery as hawkish Fed bets have not waned despite softening of US inflation.

At the press time, Japan’s Nikkei225 gained 0.18%, SZSE Component dropped 0.56%, Hang Seng slipped 0.46%, and Nifty50 eased 0.16%.

Chinese stocks are facing pressure despite the release of upbeat international data. China’s Trade Balance data (in US Dollars) has landed at $88.19B, significantly higher than the consensus of $39.2B but lower than the former release of $116.8 B. Annual Imports have contracted by 1.4% while the street was expecting a contraction of 5%. However, Exports have expanded significantly by 14.8% against a contraction of 7.0% as expected.

An upbeat China’s EXIM data might roll back the lost confidence of investors that the economy has not derailed from the track of economic recovery.

Meanwhile, Japanese equities have been showing resilience as Bank of Japan (BoJ) Governor Kazuo Ueda has conferment continuation of expansionary monetary policy to keep inflation steadily above 2%. More stimulus in the Japanese economy would stimulate economic growth.

On the oil front, oil prices have turned sideways around $83.00 after the release of a mild build-up of oil inventories last week. The US Energy Information Administration (EIA) reported a build-up of oil stockpiles by 0.597 million barrels against the expectations of a drawdown for the week ending April 07.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 27936.1 at the time of writing. Pair opened at 27936.1 and is trading with a change of 0.0 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 27677.69, 50 SMA 27655.64, 100 SMA @ 27330.38 and 200 SMA @ 27444.62.

The previous day high was 28221.28 while the previous day low was 27893.92. The daily 38.2% Fib levels comes at 28018.97, expected to provide resistance. Similarly, the daily 61.8% fib level is at 28096.23, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 27812.92, 27689.74, 27485.56
• Pivot resistance is noted at 28140.28, 28344.46, 28467.64

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