We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • Join analyst @DavidJSong at 5:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/2B8CdSgkuq
  • The Aussie sell-off halted at key lateral support this week and puts the focus on a break of this key range. Here are the levels that matter on the AUD/USD weekly chart. Get your $AUDUSD technical analysis from @MBForex here: https://t.co/rU4u1tMlmz https://t.co/QbyxUrDq1a
  • The $JPY market faces a clear disconnect between domestic economic data and monetary policy. What if that were to change? Get your market update from @DavidCottleFX here:https://t.co/4Gr8tLaHvj https://t.co/0eXMv5CTnd
  • #Forex Forecast via @DailyFX: US Dollar Technical Outlook on $DXY, $AUDUSD, $USDCAD, $USDJPY & $EURUSD Full Analysis ⬇️ https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/11/17/usd-price-us-dollar-chart-forecast-dxy-audusd-usdcad-usdjpy-eurusd.html
  • Further escalation in Hong Kong will likely bode poorly for risk appetite https://t.co/0NjUd3ahBu
  • How should you trade around event risks and what steps can you take to improve your trading psychology? Find out from @JoelKruger, a trading consultant and mentor. Only on Global Markets Decoded. Missed the episode? Read up here:https://t.co/JWIGJk4vKa https://t.co/WB39x4GP99
  • Poll - Does your personality match your #tradingstyle? Vote and find out from @WVenketas here: https://t.co/vREsUIWSJd https://t.co/Ft0ExAmMpq
  • #Dow Jones hits record high, however, central bank liquidity prompts volatility implosion. #FTSE 100 among underperformers with focus remaining on politics. Get your #equities market update from @JMcQueenFX here: https://t.co/EOFleGSeBp https://t.co/ecAyfSUeAM
  • RT @C_Barraud: 🇪🇺 #ECB’s Muller Says More Assets Could Join Stimulus List in Slump - Bloomberg https://t.co/roGEgu0VTQ
  • With increasing volatility in weather patterns, how might storms, hurricanes and floods rattle the supply chain for petroleum-based products and impact crude oil prices? Find out from @JStanleyFX here:https://t.co/O4dgBl47fq https://t.co/OQYqZAYt9S
Asian Stocks Rise On Fed Chair Powell's Comments, G20 Hopes

Asian Stocks Rise On Fed Chair Powell's Comments, G20 Hopes

2018-11-29 06:00:00
David Cottle, Analyst
Share:

Asian Stocks Talking Points:

  • Asian stocks made broad gains Tuesday
  • Trade hopes for the upcoming G20 meet also helped
  • The US Dollar was weaker as investors began to doubt the likely scale of US rate rises ahead

Find out what retail foreign exchange investors make of your favorite currency’s chances right now at the DailyFX Sentiment Page

Asian stocks traded mostly higher once again on Thursday as investors parsed the latest commentary from Federal Reserve Chair Jerome Powell.

He said on Wednesday that US interest rates were closer to their neutral level, an important distinction from remarks made just a few weeks ago. Markets seem to have interpreted this as meaning that rates may not rise as far next year as they had previously thought, although it must be stressed that this is only an arguable point at this time.

Still, US stock markets enjoyed this speculation, and their Asian peers have done likewise even though the resulting US Dollar weakness is likely to weigh on local exporters if it intensifies. Hopes for some progress in the trade logjam between the US and China at this weekend’s Group of 20 Summit in Argentina are also lending markets some support.

The Nikkei 225 added 0.7%, with Shanghai up 0.2%. The Hang Seng pared its gains and was flat in the middle of its afternoon, while the ASX 200 tacked on 0.7%.

The US Dollar was weaker pretty much across the board thanks to that reassessment of Fed risks. Domestic economic data were sparse. New Zealand business confidence remained in the doldrums in November, but at least didn’t worsen much from the previous month. Australia’s private capital expenditure disappointed by falling 0.5%, when a 1% rise had been expected. However, the pace of declines did slow from the previous month.

AUD/USD has received a boost from that generally weaker US Dollar, arresting the downturn which seemed to threaten a trial of its current range base.

Asian Stocks Rise On Fed Chair Powell's Comments, G20 Hopes

That said the previous significant peak remains elusive, and it may remain so as month-end concerns build.

Gold prices gained on that weaker greenback-the prospect of lower US yields tends to support non-yielding gold. Crude oil prices clawed back up from their year’s lows, although demand doubts continue to cloud the market.

Still to come on Thursday are French and Swiss Gross Domestic Product numbers, along with Germany’s official unemployment figures for October and a UK home-loan snapshot. However, all these will likely be overshadowed by the wait for US personal consumption and jobless-claim figures.

Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.