Asian stocks retreating as Fed on hold, Nikkei back into ¥22,300.00

The Pacific market sector is in full retreat for Friday as the US Fed holds off on rate hikes for now.
China's CPI reading managed to disappoint despite coming in at expectations, worsening the day's mood.

Joshua Gibson FXStreet

Asian stocks got pushed back into retreat after the US Federal Reserve held steady on interest rates in advance of December's widely-expected rate increase, and global equities have rolled over to expose their underbellies heading through Friday's action.

US mid-term elections held this week sparked a bullish run in broader equity indexes, but an on-hold Fed has soured the buying mood, with Chinese indexes seeing extended declines in early Friday trading after China's CPI reading for Friday morning barely scraped in at expectations, indicating a worsening decline in the Chinese domestic economy.

The MSCI broad Asia-Pacific index is in the green for the day after struggling in the early hours, up 0.66%, while Australia's ASX 200 is softly down around -0.11%.

Japan's major bourses are in decline mode as well, with the Nikkei 225 retracting 0.85% and the Tokyo Topix index sits back -0.40%, while Chinese equities are falling once more, with the Shanghai CSI 300 in the red for -1.14% and the Hong Kong Hang Seng index in freefall for -2.24%.

Nikkei 225 Technical Levels

Nikkei 225

Overview:
    Last Price: 22305
    Daily change: -1.8e+4 pips
    Daily change: -0.801%
    Daily Open: 22485
Trends:
    Daily SMA20: 22071
    Daily SMA50: 22913
    Daily SMA100: 22694.82
    Daily SMA200: 22388.78
Levels:
    Daily High: 22565
    Daily Low: 22370
    Weekly High: 22320
    Weekly Low: 20805
    Monthly High: 24480
    Monthly Low: 20800
    Daily Fibonacci 38.2%: 22444.49
    Daily Fibonacci 61.8%: 22490.51
    Daily Pivot Point S1: 22381.67
    Daily Pivot Point S2: 22278.33
    Daily Pivot Point S3: 22186.67
    Daily Pivot Point R1: 22576.67
    Daily Pivot Point R2: 22668.33
    Daily Pivot Point R3: 22771.67

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

AUD/USD eyes 100-SMA hurdle near 0.7035 as hawkish RBA counters firmer USD

AUD/USD regains positive traction on Tuesday and climbs to 0.7030 during the Asian session, reversing the previous day's corrective slide from a one-month high as hawkish RBA rate expectations continue to support the Aussie. Spot prices, however, remain below the 100-day SMA pivotal resistance amid a firmer US Dollar as traders brace for Australia’s September CPI report on Wednesday ahead of the Fed rate decision.

USD/JPY sticks to modest gains above 157.50 as traders await Fed, BoJ meetings

USD/JPY attracts buyers for the third straight day, recovering further from a one-month low ahead of Wednesday’s FOMC decision and the BoJ policy update on Friday. Meanwhile, expectations that the BoJ may hold off on aggressive rate hikes weigh on the Japanese Yen, and the US Dollar advances to a nearly two-week high, supporting the currency pair.

Gold bears flirt with $4,000 amid sustained USD buying ahead of FOMC decision

Gold meets with a fresh supply during the Asian session, stalling the previous day's modest bounce from the vicinity of a three-month low amid a firmer US Dollar. The precious metal, however, defends the $4,000 psychological mark as traders now seem hesitant and opt to wait for the outcome of the two-day FOMC policy meeting on Wednesday.

Pi Network stalls as weak crypto sentiment caps recovery

Pi Network (PI) holds steady above $0.0760 at press time on Tuesday, stalling after a roughly 2% rebound the previous day. The broader market's weak sentiment and reduced trading volume weigh on the PI token. The technical outlook is bearish, with price capped below a long-term resistance trendline and weak momentum.

France tests the Euro's nerve: What the OAT spread is telling FX traders

France's 10-year borrowing premium over Germany hit its widest since the 2011 debt crisis last week. With public spending above 57% of GDP, unrest on the streets and a presidential election next spring, cuts look unlikely. If Paris cannot trim, the bill may be paid quietly through financial repression.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.