Asia midday: Asian stocks rise on China data, Gold gains as US dollar softens; EUR/USD (Chart of the day)

[Redator]

US benchmark indices inched upward on Monday, 14 July, with the S&P 500 rising 0.1% and the Nasdaq 100 gaining 0.3%, as investors looked ahead to the release of June's US Consumer Price Index (CPI) data and key Q2 earnings reports from major financial institutions including JPMorgan, Citigroup, Wells Fargo, and BlackRock.

In the early Asian session today (9:00 a.m. SGT), the S&P 500 and Nasdaq 100 E-mini futures spiked 0.5%, pushing the US SPX 500 CFD Index and US Nasdaq 100 CFD Index toward key short-term resistance levels at 6,290 and 22,920, respectively.

Nvidia boosts market sentiment on AI chip news

The sudden rally in US stock index futures was largely driven by a positive update from AI leader Nvidia. In a blog post, Nvidia revealed it had received assurances from the US government allowing it to resume shipments of its lower-end H20 AI accelerator chips to China, reversing earlier concerns over billions of dollars in unsold inventory.

China’s economic data lifts regional stock market optimism

A wave of stronger-than-expected economic data (except for retail sales) from China supported positive sentiment in Asian markets. Key highlights from June include:

New home prices in 70 cities declined at a slower pace (-3.2% y/y vs. -3.5% y/y in May), marking the slowest drop since April 2024.

Q2 GDP rose 5.2% y/y (above consensus of 5.1%), slightly down from Q1’s 5.4%.

Industrial production surged 6.8% y/y (fastest since March), up from 5.8% in May and beating forecasts of 5.6%.

Retail sales slowed to 4.8% y/y, below expectations of 5.6%, marking the weakest growth since February.

Buoyed by China’s economic resilience, the Hang Seng Index extended its winning streak to a fourth session, gaining 1% intraday to test its 24,490 resistance level established since 25 June. Japan’s Nikkei 225 rebounded 0.6% intraday after a successful retest of its 20-day moving average (support near 39,390). Meanwhile, Singapore’s Straits Times Index broke above the psychological 4,100 level with a 0.4% gain, marking a seventh straight record-high session.

US dollar retreats, Gold reclaims key levels

The US dollar began to pull back in the Asian session after three days of strength, as markets potentially priced in a hotter-than-expected US core CPI print of 3% y/y for June (vs. 2.8% in May). The Swiss franc, New Zealand dollar, and euro led the rebound, each rising 0.1% to 0.2% against the greenback.

Read more in our previous Chart of the day – GBP/USD at risk of breaking below 20-day moving average

Gold (XAU/USD) benefited from the softer dollar, climbing 0.4% intraday. The yellow metal traded above its 20-day and 50-day moving averages and approached the key intermediate resistance at US$3,360, reinforcing its short-term bullish momentum.

Economic data releases

Fig 1: Key data for today’s Asia mid-session (Source: MarketPulse)

Chart of the day – EUR/USD minor corrective decline stalls at 20-day moving average, bullish reversal looms

Fig 2: EUR/USD minor trend as of 15 July 2025 (Source: TradingView)

The recent price actions and key technical elements of the EUR/USD suggest that the three-week period of minor corrective decline from the 1 July 2025 high may have ended, where the EUR/USD is likely in the process of forming a potential fresh bullish impulsive up move sequence within its ongoing medium-term uptrend phase.

The hourly RSI momentum indicator has flashed out a bullish divergence condition since it reached its oversold region last Thursday, 10 July, and now managed to stage a bullish breakout above the 50 level (see Fig 2).

Watch the 1.1630 key short-term pivotal support, and a clearance above 1.1710 (minor descending trendline that capped prior rebound since 3 July) increases the odds of the start of the bullish impulsive up move sequence for the next intermediate resistances to come in at 1.1770 and 1.1810/1.1825 in the first step.

On the flip side, failure to hold at 1.1630 invalidates the bullish reversal scenario for an extension of the minor corrective decline to expose the next immediate support at 1.1580 (the lower boundary of the medium-term ascending channel from 13 May 2025 swing low).

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