Asian equities could trade on the back foot as traders are eyeing this week’s Central Banks policy decision, with the FOMC being the key risk event after the US Nonfarm Payroll data on Friday. It is worth keeping a close eye on Chinese equities, which could catch up with the China Dragon Index that is traded in the US. It saw a sharp pullback, down 4.0%.
From a technical perspective, decisive flows are also hitting the markets before key major events due to profit-taking and hedging activity. Also on the radar is the month-end trade that has been supporting the USD in the last three trading sessions. On the macro front, traders will watch the Chinese PMIs to assess the growth outlook. It could bring some headwinds for risk assets if it shows a miss, as both readings are forecasted to jump sharply.
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© 2019 High Leverage FX - All Rights Reserved.