Sino-US trade talks

Asian Equities Rebound Ahead of President Trump’s Speech

Asian equity indices ended higher today as investors await President Trump’s speech in New York for fresh clues on China-US trade deal, and amid fresh violent protests in Hong Kong.

The Hang Seng index is 0.31% higher at 27,015. The Singapore FTSE Straits Times Index is 0.57% higher at 3,258 while the Shanghai Composite is 0.02% higher at 2,910. The ASX 200 in Australia trading 0.29% lower at 6,753. Nikkei 225 ended 0.81% higher at 23,520.

European indices started the day higher, DAX is trading 0.31% higher at 13,238, CAC40 is 0.18 per cent higher at 5,904, while the FTSE MIB in Milan is 0.46 per cent higher at 23,599. In London, FTSE 100 is trading 0.19% higher at 7,342. 

In commodities markets, WTI crude oil trades 0.39 per cent higher at $57.08 as global growth worries weigh on crude oil. Brent oil is trading 0.42% higher at $62.44 per barrel as oil world demand will be affected by the global slowdown. Gold trades lower at 1,450, as the short term momentum is bearish now after the price trades below the 50 and 100-day moving average. On the upside, strong resistance stands at 1,555.13 yearly high while support is at 1,448 the recent low.       

In cryptocurrencies, Bitcoin’s (BTCUSD) momentum is bearish, the cryptocurrency trades slightly higher today at 8,731, hitting the daily low at 8,648 and the daily high at 8,774. Bitcoin’s short term momentum is negative now as the cryptocurrency trades above the 200-day moving average but below the 50-day moving average. First support for BTC stands now at $7,364 recent low, while the next support stands at 7,300 round figure.

On the upside, resistance now stands at 9,925 recent high and then at 10,000 round figure. Ethereum (ETHUSD) trades higher at 185,93 with capitalisation now to 20.28 billion, on the upside, the immediate resistance stands at 200 recent high while the support stands at 136 the low from May 6th, LTCUSD trades higher at 62.11. The crypto market cap capitalization now stands at $240.45 billion.

On the Lookout: Japan Machine Tool Orders (YoY) fell from previous -35.5% to -37.4% in October. Japan Money Supply M2+CD (YoY) came in at 2.5% below forecasts (2.6%) in October. 

The New Zealand RBNZ Inflation Expectations (QoQ) came in at 1.8% in 4Q from the previous 1.86%. New Zealand Visitor Arrivals (YoY) came in at 1.4% below forecasts of 1.7% in September. 

National Australia Bank’s Business Confidence came in at 2, topping forecasts of 0 in October, the Business Conditions came in at 3, above expectations of 2 in October. 

The central bank of China set the Yuan rate (USDCNH) at 6.9988 versus yesterday’s settlement at 6.9933.  

Trading Perspective: In forex markets, USD index trades 0.01 per cent higher at 98.22, the AUDUSD trades 0.04 per cent higher at 0.6852, while NZDUSD trades 0.37% lower at 0.6350.

GBPUSD trades 0.07% higher at 1.2862 as we are getting closer to the Brexit deadline in January 31st. Major support now stands at 1.2578 recent low which if broken, might accelerate the slide further towards 1.20. On the upside, immediate resistance now stands at 1.3010 recent high while more offers will emerge at 1.3050 round figure.

In Pound futures markets, open interest increased by 4,200 contracts, volume increased by around 24.500 contracts.

Trump's speech
EURUSD Daily Chart

EURUSD trades 0.02% higher at 1.1035 as the pair’s momentum is neutral. Immediate resistance for the common currency stands at 1.1172 recent high. On the downside, first support stands at 1.1016 today’s low and then at 1.1003.

In euro futures markets, open interest decreased by 700 contracts, the volume decreased by around 30.300 futures contracts.

USDJPY is trading 0.21% higher at 109.27 having hit the daily low at 108.98 and the daily high at 109.28. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 109.06 recent high.

In Yen futures markets, open interest decreased by 1,100 contracts, volume decreased by around 47,500 futures contracts.

USDCAD is trading 0.03% higher at 1.3235 the pair will find immediate support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the upside, first resistance now stands at the 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.  

USDCAD Daily Chart