monetary policy

Asian Equities Lower Ahead of Fed

Asian stocks finished lower today as investors await the first interest rate cut in a decade from Fed. The Nikkei225 ended 0.86 percent lower at 21,521 as the Bank of Japan left its monetary policy unchanged yesterday, as expected. The Hang Seng finished 1.31 percent lower at 27,777. The Shanghai Composite ended 0.67 percent lower to 2,932, while in Singapore, the FTSE Straits Times index finished 1,49 percent lower to 3,300. Australian equities also ended lower, the ASX 200 finished 0.47% adding 0.36% to 6,812.

European equities started higher today, DAX30 is adding 0.31 percent to 12,184, CAC40 is 0.17 percent higher at 5,524 while the FTSE MIB in Milan is trading 0.34 percent lower at 21,335. The London Stock Exchange is 0,38% percent lower to 7,616

In commodities markets, crude oil trades 0.65 percent higher at $58.43 as traders turn cautious on recent tensions in the Middle East. Brent oil is trading 0.77% higher at $65.13 per barrel despite the fact that major oil producers have agreed to cut output. Gold is trading higher at 1,430, 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.    

monetary policy
BTCUSD Daily Chart

In cryptocurrencies, Bitcoin (BTCUSD) turns higher today and trades at 9,747, hitting the daily low at 9,439 and the daily high at 9,811. Bitcoin trades around the 50-day moving average, and now the momentum is neutral for the short term, the previous two times it managed to rebound from that point. Immediate support for BTC stands now at $9,085 yesterday’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 5 dollars and trades at 211 with capitalization now to 22.7 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 91.59. The crypto market cap now stands above $269.5 billion.

On the Lookout: Japan Annualized Housing Starts climbed from the previous 0.9M to 0.922M in June. Japan Consumer Confidence Index came in at 37.8 below expectations of 38.6 in June. 

Australia Consumer Price Index (YoY) came in at 1.6% above expectations of 1.5% in 2Q. Australia Consumer Price Index (QoQ) came in at 0.6% above forecasts (0.5%) in 2Q. The Australia Private Sector Credit (YoY) declined to 3.3% in June from the previous 3.6%.

New Zealand ANZ Business Confidence came in at -44.3 below expectations of-34.9 in July; ANZ Activity Outlook registered at 5%, below expectations of 8.3% in July.

Trading Perspective: In forex markets, USD continues 0.02 percent higher at 98.09, the Aussie dollar trades 0.32 percent higher at 0.6894, while Kiwi trades lower at 0.6609.

monetary policy
NZDUSD Daily Chart

GBPUSD finally rebounds from 28-month lows and is trading 0.17% higher at 1.2166. Major support now stands at 1.2118 yesterday’s low which if broken might accelerate the slide further towards 1.2108 the low from March 1st, 2017. On the upside, immediate resistance now stands at 1.2192 the 50-hour moving average while more offers will emerge at 1.2307 the 100-hour moving average.

In Pound futures markets open interest increased by 3,600 contracts while volume increased by 11,200 futures contracts.

EURUSD consolidates above the recent low around 1.1145, facing the strong support at 1.1101 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 680 contracts while volume decreased by 4,600 futures contracts.

USDJPY is trading 0.03% lower at 108.56 having hit the daily low at 108.49 and the daily high at 108.64. 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 109.68 the 100-day moving average. 

In Yen futures markets open interest increased by 1,300 contracts while volume increased by 21,400 futures contracts.

USDCAD is trading 0.03 lower at 1.3146 and continues the rebound from the lows around 1.30 amid USD strength. Also, 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.