What to expect from the Asian indices during the session overnight

Asian markets today will probably trade higher as the American indices closed higher on Friday last weeek. US CPI for June and Retail sales came in worst than expected for the second month on a row. Investors now are pricing in a possible hold on rates for this year, as the indices made new highs and the bullish trend is likely to continue.

After the data on Friday, USD fell again and AUD and NZD traded higher. The price of Oil also went up to around $46.60 per barrel, which supported the US indices. Gold made a move higher, but it does remain in bearish trend. As the markets rise, it is expected that the metal will fall. Almost all commodities were higher and this shows that the Risk on sentiment is in play.

We expect that risk currencies, commodities and indices will move higher at the expense of Gold and the USD. The JPY pobably will weaken further, after its correction on Friday, after the worst than expected data from the USA. The CAD and the GBP continue to be relatively strong against the USD but not against the AUD and NZD. Investors will focus towards the GDP and Industrial production from China and if the data is better than expected then, the indices will rise up.

It is possible that the markets in Asia will trade higher.

Trader - S. Fuchedzhiev

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