Risk sentiments are taken a hit after Apple Inc’s warned that it’s unlikely to meet sales target due to production disruption and weakening demand in China. Operations in China halted after the Wuhan Coronavirus outbreak and resumption is slower than wished. Apple said in a statement “we are experiencing a slower return to normal conditions than we had anticipated.” Global iPhone support will be “temporarily constrained” and the shortages will temporarily affect revenues worldwide.”
Both Nikkei and Hong Kong HSI are trading down more than -1% at the time of writing. Yen and Swiss Franc are the strongest for today while commodity currencies are the weakest, led by New Zealand Dollar.
Gold rises notably today as rebound from 1547.49 extends on risk aversion. Technically, whole recovery from 1535.91 is displaying a corrective structure. We’re viewing at as the second leg of the corrective pattern from 1611.37. Hence, while a break of 1591.39 resistance cannot be ruled out, we’d expect strong resistance below 1611.37 high to limit upside, to start the third leg (down). Break of 1561.91 will target 1535.91 support and below.
