Monetary Stimulus Hopes 

Asian Equities Rally On Stimulus, Silver Price Consolidates 

Asian stocks are trading higher for the third day in a row after the White House reach an agreement for a $2 trillion stimulus package. Dow Jones record its biggest one-day gain since 1933 before the stimulus deal signed. During March Dow Jones seen the five biggest daily gains and five biggest daily falls on its 135-year history. Many countries and central banks across the globe set up monetary and fiscal relief packages in an attempt to combat the coronavirus spread impact on the global economy. 

Coronavirus confirmed cases top 400,000 while the death toll rises to 17,000. After the U.K. ordered it’s citizens to stay at home and also ordered the non-necessary business to close, India lockdown 1.3 billion people.  

Nikkei 225 closed up 8.03% at 19546; the Shanghai Composite index closed 2.17% higher at 2781. The Singapore FTSE Straits Times is 4.30% higher at 2463. Hang Seng was 3.42% higher at 23439. The ASX 200 index ended 5.5 higher at 4998.

European indices started higher on Wednesday. The German DAX is 2.59% higher at 9,951. CAC 40 index is 2.07% higher at 4,331, while the FTSE MIB in Milan is 2.22% higher at 17,333. In London, the FTSE 100 is 1.46% higher at 5,525.  

In commodities markets, crude oil trading higher for the third day in a row. WTI crude oil is 3.17% higher at $24.77 while the Brent oil is 0.63% higher at $27.77 per barrel. 

The gold price is 1.10% lower at 1603. Gold’s initial resistance stands at $1,703 the monthly high, while the first support stands at $1,451, the low from March 16 trading session. Silver (XAGUSD) is higher, adding 1.00 at $14.38.    

Cryptocurrencies retreat today from two-week highs. Bitcoin (BTCUSD) price is 40539 higher at $6,739, hitting the daily low at $6,525 and the daily high at $6,803. Bitcoin technical picture is bearish as the cryptocurrency trading below all the major daily moving averages, but the picture improves for the short term. First support for BTCUSD stands now at $4,431 the low from March 14th. On the flip side, immediate resistance stands at $6,843 yesterday’s high. Strong resistance will be met at 10,495 the yearly top.

Ethereum is 0.20% higher, at 138.96 with capitalization at 15.33 billion. The initial resistance for Ethereum stands at 144.05 the high from yesterday’s trading session, while the support stands at $102.00 the low from March 16. Ripple – XRPUSD is 0.47% lower at 0.1622. Litecoin (LTCUSD) is 1.18% lower at 40.22. The crypto market capitalization stands now at $187.00 billion.

In the Lookout: The United States API Weekly Crude Oil Stock dipped from -0.421M to -1.25M on March 20. 

The New Zealand Trade Balance rose from previous $-3.87B to $-3.26B in February. The New Zealand Exports increased to $4.92B in February from the previous $4.73B while the Imports dipped from previous $5.07B to $4.33B in February.

People’s Bank of China has set the Yuan (USDCNY) reference rate at 7.0742 versus yesterday’s fix at 7.0999.

EURUSD Daily Chart

Trading Perspective: In the foreign exchange markets, EURUSD is 0.30% higher at 1.0819, the Australian dollar is 0.94% higher at 0.6011 against the U.S. greenback. The Japanese Yen is higher against the U.S. Dollar, and the USDJPY is 0.04% lower at 111.17. The U.S. dollar index is 0.39% lower at 101.55. NZDUSD trades 0.20% higher at 0.5837.

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