(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Emerging markets may take their cue this week from a recovery in commodities and signs China’s efforts to stem the spread of the coronavirus are working.Gauges of stocks, bonds and currencies in developing economies all rose in the five days through Friday as raw-material prices had their best week this year. Chinese officials urged the nation to meet its economic targets for 2020 as Hubei province, the epicenter of the outbreak, reported a slowing rate of new infections.Despite a rally since late January, emerging markets have underperformed stocks and bonds in the developed nations. That trend should soon reverse, according to Pictet Asset Management, which oversees almost $600 billion of assets.“Valuations in emerging markets, given what’s going on, are more attractive than developed markets,” Luca Paolini, the London-based chief strategist at Pictet, said in an interview.MSCI Inc.’s index of emerging equities rose 1.3% last week to pare its yearly loss to 0.8%. Currencies strengthened for the first time in four weeks, led by the Mexican peso, South African rand and Russian rubles. Bloomberg’s gauge of commodities climbed for the first time since the week of Jan. 3.Saudi G-20The U.S. Federal Reserve publishes minutes of its latest meeting on WednesdayFinance ministers from across the world will gather in Riyadh, Saudi Arabia from Saturday to discuss the global economy and how to limit the fallout from the virusSingapore’s government will give an indication of how the virus is affecting Asian economies when it announces its budget on TuesdayChina’s Loan Prime Rate -- its new monthly rate -- will be announced on Thursday and will probably be reduced as authorities seek to keep plenty of cheap money flowing to businesses and consumers struggling amid the virus shut downs“The focus will be on China for answers critical to the region and beyond -- how the battle to contain the coronavirus is progressing, how much of the economy has managed to get going again after extended shutdowns, and how is policy shifting,” said Bloomberg Economics. “We expect cuts to loan prime rates, and will be on the lookout for other measures aimed at shoring up growth”Turkey, Indonesia RatesBank Indonesia is expected to cut its benchmark interest rate on Thursday, having been among the most vocal Asian central banks in saying they will keep policy accommodative to counter the economic impact of the coronavirusCentral banks in Malaysia, Thailand and the Philippines have already reduced rates this year and have signaled they remain open to more easing“Asian central banks are trying to get ahead of the curve of monetary easing to support growth as the rapidly spreading disease dampens the economic outlook,” Prakash Sakpal, an economist at ING Groep NV in Singapore, wrote in a note. “The next one to join the race seems to be Indonesia’s central bank.”Indonesia’s economic is vulnerable to the closure of Chinese factories, which will sap demand for local exports such as palm oil, coal and copper. China is the nation’s top export destination, with shipments last year reaching $28 billionWhile the rupiah has retreated from a two-year high reached in late January, it is still emerging Asia’s top currency this year with a gain of more than 1.2%Bank Indonesia’s seven-day reverse repo rate was lowered a total of 100 basis points in 2019 to 5%In Turkey, analysts expect Central Bank Governor Murat Uysal to continue his rate-slashing spree on Wednesday, moving a step closer to the single-digit borrowing cost demanded by President Recep Tayyip Erdogan. That’s even as aggressive monetary easing has brought Turkish interest rates below inflationThe lira has weakened 2.9% in the past month\--With assistance from Karl Lester M. Yap.To contact the reporters on this story: Paul Wallace in Dubai at firstname.lastname@example.org;Lilian Karunungan in Singapore at email@example.comTo contact the editors responsible for this story: Alex Nicholson at firstname.lastname@example.org, Justin Carrigan, Paul WallaceFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Trader reaction to the two 50% levels at .6706 and .6718 will tell us if the counter-trend buying is getting stronger, or the selling pressure persists.
Currently, the NZD/USD is being supported by the RBNZ’s hawkish outlook for the economy. However, gains are being capped by concerns over a slowdown in the global economy and the strength of the U.S. economy.
It’s a busy week ahead, with private sector PMI numbers likely to reflect the impact of COVID-19 on economies. Falling cases should soften the blow, however.
Based on Friday’s close at $1586.90, the direction of the April Comex gold market early next week is likely to be determined by trader reaction to the uptrending Gann angle at $1586.80 and the main retracement zone at $1581.20 to $1590.30.
CURRENCIES The U.S. dollar just spent another week flexing its muscles. While that hasn’t done much to derail upside momentum for the stock market so far, it’s worth remembering that big moves by the word’s reserve currency can send ripples through global financial markets.
The gold markets initially pulled back during the week but have recovered a bit to show signs of life again. It looks as if the $1600 level will be targeted yet again.
The US dollar has stalled a bit during the week, showing the ¥110 level as an area that is going to continue to be very difficult to break out of.
The British pound recovered during the week, breaking above the 1.30 level but quite frankly it faces a slew of resistance just above.
The British pound rallied during the week, reaching towards the 200 week EMA against the Japanese yen. That being said it looks as if the market is trying to take off to the upside.
The Euro has plunged significantly during the week, breaking through the 1.10 level during the week before, and following through the 1.09 level over this past week.
The Australian dollar has rallied a bit during the week, but peel back some of the gains at the end of the day on Friday to show less than convincing action.
Gold markets rallied a bit during the trading session on Friday, to show signs of strength again going into the weekend. Ultimately gold continues to be where the buyers are jumping in to protect their portfolios.
US dollar has gone back and forth during the trading session on Friday, as we sit just below the ¥110 level. This is a large, round, psychologically significant figure that continues to cause issues.
The British pound pulled back a bit against the US dollar heading into the weekend as a bit of profit-taking may have been in order. That being said, it’s worth noting that the 1.30 level has also offered a bit of support during the session.
The British pound pulled back a bit during the trading session on Friday, as traders are probably wanting to get rid of risk heading into the weekend. After all, there is a whole host of issues out there that could flareup.
The Euro rallied a bit during the Friday session, which makes quite a bit of sense considering that the weekend is coming, and quite frankly most people who have shorted the Euro against the US dollar have made quite a bit. Now that the Euro has broken major support, it’s more than likely being patient will be the best way to trade this market.
The Australian dollar has gone back and forth during the trading session on Friday as we head into the weekend. There is a lot of noise out there, so this of course will have major influence on the Aussie.
Based on the early price action and the current price at 1.0851, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to Thursday’s close at 1.0840.
As the coronavirus drags on, Japan’s economy remains vulnerable. The tourist industry and automotive supply chains have already been badly affected by the outbreak.