USD/CAD MT: the bias remains bullish.
Update on supports and resistances.
Pivot: 1.0050
Our Preference: LONG position above 1.0050 with 1.0445 & 1.0650 in sight.
Alternative Scenario: Below 1.0050 look for further decline to 0.9770.
Comment: the RSI is supported by a bullish trend line.
Trend: ST Ltd Upside; MT Range, we have been bullish since 7 MAR 2012 (1.0020).
Key levels Comment
1.0850*** Horizontal resistance
1.0650*** Horizontal resistance
1.0445** Horizontal resistance
1.0135 Last
1.0050*** MT pivot point
0.9770** Horizontal support
0.9525** Horizontal support
Trading Central recommends MT5 to publish FX charts
Copyright Trading Central 1999-2011
--Asian markets mostly lower on Bernanke testimony
--Nikkei drops 1.1%, Hang Seng Index drops 1.1%, S&P ASX 200 down 0.4%
--HSBC pulls down Hang Seng Index
(Updates prices, adds company news)
By Daniel Inman
HONG KONG--Asian stocks fell Wednesday as a gloomy outlook by U.S.
Federal Reserve Chairman Ben Bernanke trumped hopes for further
monetary stimulus.
During his testimony to Congress Mr. Bernanke gave a bleak assessment
of the world's largest economy, though he failed to point towards any
near-term monetary stimulus.
His comments were eventually taken as a positive in the U.S. where the
Dow Jones Industrial Average finished up 0.6% overnight as investors
interpreted Mr. Bernanke's remarks as leaving the door open for
further policy action. By the time Asia woke up however, the focus was
more on poor economic outlook.
In China, the state-run China Securities Journal published a
front-page commentary saying that China should shift its monetary
stance towards easing to stop the slowdown in economic growth.
Some observers are expecting an imminent reduction in China's reserve
requirement ratio, the minimum of amount of capital that banks have to
keep in reserves. Alvin Cheung, associate director at Prudential
Brokerage, said that investors are expecting a cut "perhaps as soon as
Friday."
Hong Kong's Hang Seng Index dropped 1.1% to 19239.88, giving back most
of its 1.3% gain Tuesday, as the index was dragged down by its
single-largest constituent, HSBC. The company fell 2.1%, after the top
executive in charge of the bank's anti-money laundering programs
stepped down in the wake of a U.S. Senate investigation into risky
practices.
Poor performance by Chinese property developers also added pressure to
the Hang Seng Index, as signs of recovery in the housing market were
taken as an indication that Beijing will maintain its tough policy
towards the sector. China Resources Land fell 5.9% and China Overseas
Land & Investment dropped 4% after a survey showed that average
housing prices in 70 cities were flat in June, compared with May,
putting an end to an eight month continual decline.
In Australia, the S&P ASX 200 was 0.4% lower at 4123.60 owing to a
decline in mining stocks.
Mining giant BHP Billiton fell 2% in spite of announcing
better-than-expected iron output in its fourth quarter production
numbers. Fortescue Metals Group sank 3.5%, extending losses, as market
analysts cut their forecasts on the iron-ore miner owing to concerns
about potential capital expenditure overrun.
Japan's Nikkei Average ended 0.3% lower at 8726.74, in spite of
spending much of the session in positive territory. The market
eventually turned down as a result of a late rise in the yen that
weakened gains in exporters and selling in power companies.
South Korea's Kospi was down 1.5% to1794.91 and the Shanghai Composite
gained 0.4% to 2169.10.
Other regional risk-currencies benefited from weakness in the dollar.
The greenback weakened against the Korean won to 1,140 from 1,143 late
Tuesday.
The dollar advanced against the won briefly ahead of an announcement
from North Korea before weakening again after Pyongyang failed to
release anything dramatic.
The dollar hit a fresh two-month low against the Singapore dollar at
1.2581 early in the session compared with 1.2613 late Tuesday before
softening back to 1.2596 later in the session.
The euro dipped slightly to $1.2286 compared with $1.2295 late Tuesday.
Write to Daniel Inman at Daniel.Inman@wsj.com
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(END) Dow Jones Newswires
July 18, 2012 05:58 ET (09:58 GMT)
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