Asian Equities Higher Ahead of ECB Decision

Asian stocks finished higher for one more day as investors await the ECB decision later today;  U.S. trade negotiators will likely visit China next week for their first face-to-face talk with Chinese officials since the G20 meeting. The Nikkei225 ended 0.32 percent higher at 21,779, the Hang Seng finished 0.36 percent higher at 28,625. The Shanghai Composite ended 0.24 percent higher to 2,930, while in Singapore the FTSE Straits Times index finished 0.29 percent higher to 3,378. Australian equities trading higher, the All Ordinaries index has hit an all-time high this morning, breaking through its previous high set on November 1, 2007. 

European equities started the day higher, DAX30 is adding 0.35 percent to 12,565, CAC40 is 0.75 percent higher at 5,646 while the FTSE MIB in Milan is trading 0.30 percent higher at 22,132. The London Stock Exchange is 0,06% percent higher to 7,506 amid non-deal Brexit worries.

In commodities markets, crude oil trades 0.34 percent higher at $56.07 as traders turn cautious on recent tensions in the Middle East. Brent oil is trading 0.14% higher at $63,17 per barrel despite major oil producers have agreed to cut output. Gold is trading flat at 1,422 keeping the bullish momentum as the price holds above all the major daily moving averages. On the upside, strong resistance will be met at 1,452.90 high.      

In cryptocurrencies, Bitcoin (BTCUSD) trades higher today breaking above the 10,000 mark, and trades at 10,052 hitting the daily low at 9,650 and the daily high at 10,179. Bitcoin tests the 50-day moving average, the previous two times it managed to rebound from that point. Immediate support for BTC stands now at $9,205 Friday’s low while next support stands at 9,000. On the upside, strong resistance now stands at 13,138 recent high and then at 13,500 round figure. Ethereum (ETHUSD) adds almost 15 dollars and trades at 219 with capitalization now to 26.6 billion, on the upside the immediate resistance stands at 317 Friday’s high while the support stands at 200 round figure, Litecoin (LTCUSD) also trades higher at 93.15. The crypto market cap now stands above $277.5 billion.

On the Lookout: ECB announces their July monetary policy decision at 11:45GMT while at 12:30GMT the ECB president Draghi delivers his press conference.

AUDUSD Daily Chart

In US calendar we have the Initial Jobless Claims, the Wholesale Inventories (June) the Durable Goods Orders (June) all due at 12:30GMT. The Kansas Fed Manufacturing Activity for July will be released at 15:00GMT.

Trading Perspective: In forex markets, USD continues higher 0.04 percent at 97.72, the Aussie dollar trades 0.10 percent lower at 0.6968, while Kiwi also trades lower at 0.6693.

GBPUSD is trading 0.01% lower at 1.2482. Major support now stands at 1.2381 Thursday’s low which if broken might accelerate the slide further towards 1.23 round figure. On the upside, immediate resistance now stands at 1.2662 the 50-day moving average while more offers will emerge at 1.2888 the 200-day moving average.  

EURUSD gives up 0.07 percent to 1.1131 making a close to monthly low, facing the strong support at 1.1106 the yearly low, which if the pair manages to close below will open the way to 1.1050.  On the upside, immediate resistance stands at 1.1200 round figure. 

Euro futures markets open interest increased by 8,500 contracts while volume decreased by 2,500 futures contracts.


ecb decision later
EURUSD Daily Chart

USDJPY is trading 0.08 percent lower at 108.10 having hit the daily low at 108.07 and the daily high at 108.23. USDJPY pair will find support around 107.50 round figure and then at 107.00. On the upside, immediate resistance for the pair now stands at 108.98 the recent high and then at 110.04 the 100-day moving average. 

USDCAD is trading 0.03 percent higher at 1.3133 and continues the rebound from the lows around 1.30 amid USD strength, and the retreat in crude oil prices, Canada’s main export item seems to have added further weakness in the Canadian Dollar (CAD). The pair will find immediate support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the upside, immediate resistance now stands at the 1.32 zone before an attempt to 1.3450 recent high from 31st May.