Asian equities advance higher following strong results from the US on existing home sales on Friday.
- US existing home sales surged 7.2% in July and according to the National Association of Realtors this marks a four-month rally for the first time in 5 years.
- The Japanese yen and the US dollar fell against the euro as investor risk appetite improves.Â The 16-nation currency is trading near the strongest level against the greenback ahead of a report forecast to show European industrial orders fell at a slower pace.
- Crude oil traded near a 10-month high on speculation demand will pick up as the global economy recovers from its deepest recession since World War II.
- Oil began rising on Friday on the back of a strong Purchasing Manager's Index and continued its rally as Fed Chairman Bernanke stated that chances for near-term growth appear good.
- The Fed Chairman comments were optimistic, but also quite prudent about the quantitative easing ending sometime.Â However, the market took the Fed's annual conference in Jackson Hole as good news.
Currency to watch out for: EURUSD & USDCAD
- The EURUSD pivot point is at 1.4375 with a preference to enter into short positions at 1.4365
- The USDCAD pivot point is at 1.0755 with a preference to enter into long positions above 1.0755
Today's calendar and market movers:
- EU Industrial New Orders month on month expected to rise to 1.7%
- Canada Core Retail month on month expected to drop to 0.2%
Now onto Stocks:
- US stocks ended the week at 2009 highs on Friday with the Dow up 1.7%, the S&P up 1.9% and the NASDAQ up 1.6%.
- The optimism on a global economic recovery was carried over into the Asian session this week with the Nikkei at 3.4% and the Hang Seng at 1.9% as of 06:15 GMT.