Asian indices finished higher today as investors cheered the signing of the phase-one trade deal between China and the US. This represents a pause in the trade war, and should boost the sale of US products and services to China, and could further open the Chinese markets to foreign firms, protect intellectual property and end currency manipulation.
The Nikkei 225 closed up 0.45% at 24,041. The Hang Seng finished 0.60% higher at 29,056. The Singapore FTSE Straits Times is 0.09% higher at 3,281 while the Shanghai Composite finished 0.05% higher at 3,074.
European indices started higher during the trading session. The DAX index is 0.83% higher at 13,541. CAC40 is 1.04 higher at 6,101, while the FTSE MIB in Milan is 0.66 per cent higher at 24,099. In London, the FTSE 100 is 0.68% higher at 7,661 after weaker retail sales in the UK.
In commodities markets, the crude oil price is 0.24% higher at $58.67 as traders digest the geopolitical risks in the Middle East. Brent oil is 0.34% higher at $64.84 per barrel. Gold price trades 0.15% higher at 1,555. The gold outlook remains bullish despite the recent correction. The immediate resistance stands at 1,611 the recent high, while the support stands at 1,447 the recent low.
In cryptocurrencies markets, the bitcoin continues higher today, adding 2.39% at $8,918, hitting the daily low at $8,608, and the daily high at $9,002. BTCUSD momentum is positive now as the crypto pair breached above the 200-day moving. Support for BTCUSD stands now at $8,000, while the next support level holds at 7,500.
On the other hand, resistance will be met at 9,925 high and then at 10,000 round figure. Ethereum ETHUSD trades 3.7% higher at 169.95 with capitalization now at 18.65 billion, on the upside resistance for ETHUSD stands at 200 recent high while the support stands at 117.09 the previous week low, Litecoin is trading 7.04% higher at 59.80. The crypto market capitalization is $245.731 billion.
In the Lookout: New Zealand REINZ House Price Index (MoM) dropped to 0.5% in December from the previous 1.4%. Moody’s commented on US-China phase one trade deal that the deal will not resolve the core differences.
The People’s Bank of China (PBOC) has set the Yuan reference exchange rate at 6.8807 versus yesterday’s fix at 6.8845.
Trading Perspective: In the forex market, the US dollar index trades 0.04 per cent higher at 97.17, the Aussie dollar is 0.27% higher at 0.6919 against the US dollar. NZDUSD trades 0.48% higher at 0.6648. USDCHF is 0.15% lower at 0.626.
GBPUSD trades 0.19% higher at 1.3061 as we are getting closer to the Brexit deadline on January 31st, 2020. First support for the pound against the US dollar now stands at 1.2578 low, which if broken, might push the GBPUSD further down towards 1.20. On the upside, the first resistance will be met at 1.3511 recent high.
EURUSD trades 0.08% higher at 1.1158 as the pair’s short term momentum is positive now. The first resistance for the EURUSD stands at 1.1224 recent high. On the other hand, support is at 1.1144 today’s low and then at 1.10.
USDJPY is trading 0.08% higher at 109.98, having hit the daily low at 109.84 and the daily high at 110.06. USDJPY will meet support at 105.43 the low from August 22nd. On the upside, initial resistance for the USDJPY now stands at 110.20 recent high.
USDCAD trades 0.05% lower at 1.3035, as the Canadian dollar pressured by weaker crude oil. The pair will meet first support at 1.2950 the recent low while the next support level stands at 1.29 round figure. On the flip side, resistance will be met at the 1.3066 the high from December 31st.