ASIA STOCKS: Asian Equities Mostly Higher Following Early Volatility
Asian stocks experienced volatile trading on Tuesday as investors reacted to US President Donald Trump's initial policy actions and trade comments. The MSCI Asia Pacific Index rose 0.5% after fluctuating between gains and losses. While Trump confirmed tariffs of up to 25% on Mexico and Canada by February 1, he held off on outlining specific measures against China, leaving the door open for future negotiations.
- Trump signaled potential tariffs on Chinese goods if Beijing blocks TikTok's sale but avoided committing to immediate China-specific levies.
- Technology stocks led the region, buoyed by news of a Chinese government chip fund's investment in AI. Renewable energy and electric vehicle stocks fell after Trump withdrew the US from the Paris Agreement and rolled back environmentally-friendly policies. and shares in energy and chemical sectors declined as investors weighed Trump's trade policy.
- Goldman Sachs’ Kinger Lau forecasted a potential 20% rise in Chinese equities over the next 12 months, suggesting markets can absorb the impact of tariffs.
- APAC markets: Japanese equities mixed, with the TOPIX -0.10% while the Nikkei trades +0.10%, Hong Kong's HSI +1.20%, China's CSI 300 +0.25%, Taiwan's TAIEX +0.20%, South Korea's KOSPI +0.20%, Australia's ASX 200 +0.60%, New Zealand NZX 50 -0.30%
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TRUDEAU SAYS `WE HAVE A LOT OF WORK TO DO'
- TRUDEAU SAYS `WE HAVE A LOT OF WORK TO DO'
- TRUDEAU WANTS GOVT TO PREPARE FOR NEW US ADMINISTRATION
- TRUDEAU DOESN'T ADDRESS QUESTIONS ABOUT HIS LEADERSHIP
USDCAD TECHS: A Pullback Would Be Considered Corrective
- RES 4: 1.4539 3.382 proj of the Oct 17 - Nov 1 - 6 price swing
- RES 3: 1.4537 2.0% 10-dma envelope
- RES 2: 1.4508 3.236 proj of the Oct 17 - Nov 1 - 6 price swing
- RES 1: 1.4467 High Dec 19
- PRICE: 1.4356 @ 16:56 GMT Dec 20
- SUP 1: 1.4301 Low Dec 18
- SUP 2: 1.4174/4014 20- and 50-day EMA values
- SUP 3: 1.3928 Low Nov 25 and a key support
- SUP 4: 1.3822 Low Nov 6
USDCAD bulls remain in the driver’s seat. While price faded into the Thursday close, the recent breach of 1.4178, the Nov 26 high, confirmed a resumption of the uptrend and this maintains the price sequence of higher highs and higher lows. The latest rally opens 1.4508 next, a Fibonacci projection level. Initial firm support to watch lies at 1.4174, the 20-day EMA. A pullback would be considered corrective.
AUDUSD TECHS: Bearish Trend Structure
- RES 4: 0.6550 High Nov 25
- RES 3: 0.6501 50-day EMA
- RES 2: 0.6429 High Dec 12
- RES 1: 0.6337/6396 Low Dec 11 / 20-day EMA
- PRICE: 0.6263 @ 16:55 GMT Dec 20
- SUP 1: 0.6199 Low Dec 19
- SUP 3: 0.6158 1.236 proj of the Sep 30 - Nov 6 - 7 price swing
- SUP 3: 0.6100 Round number support
- SUP 4: 0.6045 1.500 proj of the Sep 30 - Nov 6 - 7 price swing
The trend needle in AUDUSD continues to point south and this week’s fresh cycle lows and Wednesday’s sell-off, reinforce a bear theme. The move down maintains the price sequence of lower lows and lower highs. Note that moving average studies are in a bear-mode position too, highlighting a dominant downtrend. The break lower opens 0.6158 next, a Fibonacci projection. Initial firm resistance to watch is 0.6396, the 20-day EMA.
