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Japan and China on focus during Asia trade session, where is the money today
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Loading...Asian stock markets will certainly react on declines in Europe and the United States after Rex Tillerson's dismissal. The former US Foreign Minister was a free trade advocate and one of the few remaining in the White House who welcomed good economy relations with the Asian region. Following the "convergence" of the United States and North Korea, Trump most likely wants to build a brand new team to conduct demilitarization talks. In view of the situation created during the Asian session, the losers will be Chinese stocks, and declines in AUD and NZD are likely to remain.
At 01:30 we expect Westpac Consumer Confidence data for Australia. Taking into account the negative sentiment of the markets, the traders will hardly be strong in Australia's consumer confidence data. Positive data will have a limited positive influence for AUD, and worse data than previous ones will support negative moods. If we trade AUD and NZD, it's good to look for short positions.
At 01:50 we look forward to the report of the latest Bank Of Japan meeting. Investors' expectations are that the tune among Central Bank members remains to the detriment of the JPY. Against the backdrop of the tense political and economic climate, the report will hardly be able to lower the value of the safe haven instrument. Purchases at JPY are in fashion and this is unlikely to change during the Asian session, where we expect further stock sales and purchase of hedging instruments.
China will release data on investment, industrial production and retail sales at 4:00. Expectations for all three economic indicators are negative, and if this is confirmed we expect the AUD and NZD negativism to be maintained and the JPY to continue to rise.
In short:
The fall in AUD and NZD remains the more likely scenario during the Asian session, while the JPY is likely to continue to pick up. Stock markets, especially in China, will be downsized against the backdrop of political changes in the White House.
Jr Trader Petar Milanov
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