January 3, US stock indices closed with growth, after the publication of positive economic statistics in the United States. At the same time, an unexpected decline in oil prices did not allow indices to hold on to session highs. Economic data released yesterday in the US showed that the business activity index in the manufacturing sector rose to 54.7% in December, from 53.2% in November. The index has surpassed analysts’ expectations and reached its highest level in the last two years. Also, construction costs increased by 0.9% in November, which is higher than expected. The US manufacturing sector grew to a maximum of two years amid a surge in new orders, reflecting trends in the global global economy. Thus, production in the euro area is growing at the fastest pace over the past five years, while production in China has stabilized. At the same time, the rise in prices for raw materials is beginning to cause concern among some experts who express the view that this may accelerate inflation and negatively affect Trump’s plans to stimulate the economy. The Dow Jones Industrial Average rose 119.16 points, or 0.60%, to close at 19,881.76. The S & P 500 closed higher at 19.00 points, or 0.85%, at 2,257.83. The Nasdaq Composite Index closed with growth of 45.97 points, or 0.85%, at the level of 5.429.08. Earlier today, Asian stock markets traded in positive territory, amid the growth prospects of the American economy, combined with the weakness of regional Asian currencies. The Japanese market, which opened after the weekend, became the growth leader. The Japanese market was strengthened by the positive dynamics of the shares of financial companies and export-oriented corporations. The top gainers were Shinsei Bank, which added 4.1%, Mitsubishi UFJ jumped 4.4%, Honda Motor added 4.2% and Mitsubishi grew 4.2%. The index of business activity in the manufacturing sector in Japan, a key indicator of manufacturing activity rose to 52.4 in December from 51.9 in November, showing the highest value since December 2015. The index value above 50 indicates growth. Nikkei Stock Average rose 479.79 points, or 2.51%, ending the session at 19.594.16. S & P / ASX 200 in Australia rose by 3.23 points, or 0.06%, to close at 5,736.41. The Shanghai Composite Index rose during trading on 22.87 points, or 0.73%, to close at 3,135.92. The Hang Seng index in Hong Kong loses -26.73 points, or -0.12%.
In the FOREX currency market on the daily chart of the USD / JPY pair, a high wave reversal candle has formed, in spite of this, during today’s trading, the quotes of the pair continued their upward movement. At the same time, the MACD indicator continues to decline, indicating the bears are returning to the market, and moving averages, on the contrary, show a persisting bullish trend. In this situation, it is worth considering two scenarios. In case of continued growth, the USD / JPY currency pair quotes and the breakdown of the intermediate level 118.54, the bulls will have a good opportunity to continue moving northward, in the direction of the key resistance level of 121.68. At the same time, in the event of a resumption of the downward movement and the breakdown of the Low level of yesterday’s daily candle, the bears may start a downward movement, to work out a key support level of 116.01.
Today, the AUD / USD quotes continued moving north. The MACD indicator continues to grow, indicating a return to the bull market. In this situation, we can expect the continuation of bullish dynamics, to test the key resistance level of 0.7305. Alternative option. Moving averages indicate a bear trend persist. In the case of a resumption of the decline and breakdown of the Low level of yesterday’s daily candle, the bears will have the opportunity to resume the downward movement, to test the key support level of 0.7144.
Yesterday, on the daily chart of the NZD / USD currency pair, a high wave reversal candle was formed, at the same time, another attempt by bears to break through the key support level of 0.6880 ended in failure. The MACD indicator is growing, indicating a return of bulls to the market. In this situation, we can expect the continuation of bullish dynamics, to test the key resistance level of 0.7053. Alternative option. In the event of a resumption of the decline and breakdown of the key support level of 0.6880, the bears can resume the downward movement, to work out the key support level of 0.0.6674.
Today, gold quotes continued to show growth. The MACD indicator continues to grow, pointing to the rising potential of bulls. In this situation, we can expect the continuation of the bullish dynamics, to test the key resistance level of 1206.80. Alternative option. Moving averages, show the persistence of a bearish trend. So, in the event of a resumption of decline in quotations of gold and breakdown of the level of yesterday’s daily candle, bears can resume the downward movement, to test the key support level of 1142.34.
Overview prepared by Fort Financial Services Research.