Market outlook: Asian Shares Upbeat, Positive Chinese Data

Asian shares moved up with the positive sentiment from dovish comments by the U.S. Federal Reserve chief Janet Yellen on 7th May . This was followed by the positive Chinese trade data showing some signs of stabilization.

Tokyo's Nikkei share average moved up by 1.1 %. The MSCI's broadest index of Asia-Pacific shares excluding Japan moved up by 0.5 %. Chinese exports surged up by 0.9 % in April compared to the year earlier. While the economists' estimates of exports were around a 1.7 % decline, the positive data have been higher than the expectations. In addition to that the imports also exceeded economists' expectations.

While in the U.S., the Dow Jones industrial average made an upswing of 0.7 %. While the S&P 500 advanced by 0.6 % Loosing its shine, Gold consolidated at $1,290.30 per ounce after being pressured down to 1.4 % on May 7.

Forex Trading: Greenback Surges Up Against The Yen

The greenback made a comeback against the yen as data predicts a fall in jobless claims and an increase in hiring in April. More support was drawn to the greenback with the expectations of positive U.S. data on consumer spending and manufacturing growth.

The positive Chinese data for April showing better PMI readings facilitated a two-day gain by the Australian dollar. The dollar traded at 102.29 against the yen as of 1:02 p.m. in Tokyo. This was high from yesterday level of 102.24, when it moved down by 0.4 %.

Against the euro, the dollar kept steady at 1.3870 after decreasing by 0.4 % in New York. The yen also kept steady against the euro and traded at 141.88 per euro. Markets in China, Hong Kong, Singapore, South Korea and Switzerland will remain closed due to public holiday on May 1.

Forex Market Outlook: NZD/USD Is Vulnerable To Downside Correction

After reaching a high of 0.8747 on 17th April 2014, the highest in years, the NZD/USD settled down to below 0.8700 level in the week. Speculating that the pair is heavily overbought, any correction will be healthy until the support level of 0.8600 is unbroken.

Investors are speculating on some of the important reports such as the CPI numbers scheduled on 16th April 2014  and the consumer confidence report to be released on 17th April. Some of the sentiments due to geopolitical tensions in Ukraine and the weak Chinese data may affect the kiwi. Investors can expect the kiwi to be range bound between 0.8700 level on the upside and a 0.8600 level on the downside, unless it starts a new movement.

NZD/USD                                                  0.8648/55 (-0.43%)
                                                                    H0.8695 L 0.8630 

S3	S2	S1	R1	R2	R3
0.8613	0.8635	0.8656	0.8740	0.8761	0.8783