Asian stocks mixed as coronavirus new cases soar
The price of crude oil was little changed during the Asian and American sessions. This is after the Energy Information Administration (EIA) released last week’s inventories data. Inventories rose by more than 7.45 million barrels, which was higher than last week’s 3.35 million. Previous data from the API showed that inventories rose by more than 6 million barrels. The data came at a time when traders are worried about low demand as coronavirus spreads. Yesterday, OPEC revised its oil demand forecast for this year. The organization said that oil demand would rise by 990k barrels per day. This is 19% less than the previous demand.
Asia-Pacific stocks were mixed as the market focused on the coronavirus disease. In China, the Shanghai composite index fell by 20 basis points. In Japan, the Nikkei index rose by 5 basis points while in Australia, the ASX index rose by 25 basis points. This happened as more sad news came from China. Health officials in the country reported more than 14k new cases in Hubei Province. This was the biggest number released since the outbreak started last year. More than 48k people have been infected while more than 1,300 have died.
The dollar rose during the American session as Jerome Powell continued his testimony in congress. In the testimony, he talked about the risks posed by the illness. He also warned that the Fed was little prepared for the next recession. This is because interest rates are already at historic lows and the Fed has continued to expand its balance sheet. This means that the Fed would have little to do if a recession came. This was the same sentiment that Christine Lagarde held last week. Later today, we will receive CPI data from the US. The headline CPI is expected to remain unchanged at 0.2% while the core CPI is expected to have risen from 0.1% to 0.2%.
The EUR/USD pair declined to a low of 1.0868. This was the lowest level since April 2017. The pair has been on a sharp decline since the year started. The signal and histogram of the MACD has been below the neutral line throughout this month. The RSI too, has been oversold on the four-hour chart. The 14-day EMA has provided good resistance for the pair. There is a possibility that the pair will continue moving lower. This is because Powell’s statement has not changed market sentiment on the dollar.
The XBR/USD pair was unchanged in overnight trading. The pair is trading at 55.82, which is a few points below yesterday’s high of 56.25. The price is above this week’s low of 53.20. On the four-hour chart, the 14-day and 28-day exponential moving average have made a bullish crossover. The RSI has been moving upwards. The MACD too has moved above the neutral line on the four-hour chart. This implies that the pair may continue moving upwards.
The EUR/CHF declined to a low of 1.0628. This was the lowest level since February 2017. The pair has been on a steep downward trend since April last year. On the four-hour chart, the pair is below all the short, medium, and long-term moving averages. The 14-day EMA has provided an important support. The MACD and RSI have all been in the oversold level while ADX has moved to almost 50. This is an indication that the pair may continue with the downward trend.