Asian stocks have followed the footprints of the S&P500 rally after the release of the highly soft US PPI report. (Pivot Orderbook analysis)

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• Asian stocks have followed the footprints of the S&P500 rally after the release of the highly soft US PPI report.
• Japanese equities are running on steroids as BoJ Ueda is reiterating the need for the continuation of expansionary monetary policy.
• OPEC left the global oil demand growth forecast for 2023 unchanged at 2.32 million barrels per day.

The pair currently trades last at 28386.5.

The previous day high was 28426.34 while the previous day low was 27943.93. The daily 38.2% Fib levels comes at 28242.06, expected to provide support. Similarly, the daily 61.8% fib level is at 28128.21, expected to provide support.

Markets in the Asian domain have cheered the sheer softening of the United States Producer Price Index (PPI) data released on Thursday. Investors were gung ho for S&P500 as the weak US PPI report has bolstered expectations that the Federal Reserve (Fed) will dial back higher rates sooner than anticipated. US equities witnessed a massive inflow of funds from the market participants as a halt in the policy-tightening cycle would restart the expansion plans of firms as they would be able to fetch advances at lower interest obligations.

Deflated US PPI report led by weaker gasoline prices hammered the US Dollar Index (DXY) firmly. The USD Index fell like a house of cards and has refreshed its 11-month low at 100.78, at the time of writing.

At the press time, Japan’s Nikkei225 soared 1.09%, SZSE Component gained 0.47%, and Hang Seng remained flat.

Indian markets are closed on Friday on account of Dr. Baba Saheb Ambedkar Jayanti.

Japanese equities are running on steroids as Bank of Japan (BoJ) novel leader Kazuo Ueda is reiterating the need of continuation of expansionary monetary policy. BoJ Ueda told the G20 that Japan’s core consumer inflation, which is currently around 3%, is likely to fall back below 2% in the second half of this fiscal year.

Meanwhile, Chinese stocks gained strength in hopes of a firmer recovery this year. People’s Bank of China (PBOC) Yi Gang said in a statement on Friday, he is expecting the Gross Domestic Product (GDP) in China this year to grow around 5%, as the economy is rebounding and stabilizing, the property sector is rebounding and inflation is low.

On the oil front, oil prices have shown a recovery and are making efforts in extending their rebound move above the immediate resistance of $82.60. The black gold has shown a rebound despite expectations of a stagnant demand outlook. On Thursday, OPEC left the global oil demand growth forecast for 2023 unchanged at 2.32 million barrels per day, as reported by Reuters.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 28386.5 at the time of writing. Pair opened at 28386.5 and is trading with a change of 0.0 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 27733.42, 50 SMA 27671.79, 100 SMA @ 27329.97 and 200 SMA @ 27455.21.

The previous day high was 28426.34 while the previous day low was 27943.93. The daily 38.2% Fib levels comes at 28242.06, expected to provide support. Similarly, the daily 61.8% fib level is at 28128.21, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 28078.17, 27769.85, 27595.76
• Pivot resistance is noted at 28560.58, 28734.67, 29042.99

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