Negative moods will be preserved during the Asian session

Asian markets are preparing for trading in a negative territory after US stocks ended the 6-day rally, mainly because of worries about high inflation in the United States, which will push the Fed to a stricter monetary policy. Futures on stock indices of Japan and Australia show a decline, and after the Wall Street SP500 sells back below 50SMA.

During the Asian session at 02:30, we expect Australian wage data and PMI in Japan. Expectations for Australian wages are to keep their growth of 0.5% and Q4 by 2017. If the data is predicted, AUD will hardly reflect the news. Worse data will lead to the sale of the Australian, and given the stabilizing US dollar, it is likely that AUD/USD will head to the main diagonal of the upward channel. In Japan, manufacturing PMI is expected to register an increase to 55.2 points in February from 54.8 points in January. Better data than expected will boost positivism for JPY, especially against the backdrop of the negative sentiment of stock markets.

China's markets will remain closed due to the lunar New Year in the country

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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