Political Turbulence

Asian Indices Lower, Bitcoin Slumps

Asian indices finished lower today as political turbulence in the US weighs on global equities. The US and China planning to restart negotiations in early October. The oil price stabilized after the drone attack in Saudi Arabia oil facilities which will cut 5% of the world oil supply.

The Hang Seng is trading 1.28 per cent lower at 25,945, the Shanghai Composite is trading 1.00 per cent lower to 2,955, while in Singapore, the FTSE Straits Times index finished 0.94 per cent lower at 3,125. The ASX 200 in Australia finished 0.57% lower at 6,710.

European indices started lower during the day. DAX30 is 1.08 per cent lower to 12,173, CAC40 is 1.42 per cent lower at 5,548 while the FTSE MIB in Milan is 1.56 per cent lower at 21,567. In London, FTSE 100 is trading 0.90% lower at 7,226. The UK is scheduled to leave the EU on October 31.

political turbulence
XAUUSD Daily Chart

In commodities markets, crude oil trades 1.31 per cent lower at $56.54 after the drone strikes on Saudi Arabia oil facilities. Brent oil is trading 1.43% lower at $61,23 per barrel as oil world supply will be affected by the drone attacks. Gold trades higher at 1,529, keeping the bullish momentum as the price holds above all the major daily moving averages. On the upside, strong resistance will be met at 1,555.13, the recent high, while support is at 1,479, the 50-day moving average.      

In cryptocurrencies, Bitcoin (BTCUSD) continues lower at 8,416, close to 3-month lows, hitting the daily low at 8,204 and the daily high at 8,790. Bitcoin short term momentum is bearish now as it trades below all major daily moving averages. Immediate support for BTC stands now at $8,204 today’s low, while next support stands at 8,000. On the upside, strong resistance now stands at 8,790 daily high and then at 9,500 round figure. Ethereum (ETHUSD) trades lower at 167,53 with capitalisation now to 18.3 billion, on the upside, the immediate resistance stands at 317 high while the support stands at 136, the low from May 6th. Litecoin (LTCUSD) trades lower at 55.78. The crypto market cap capitalization now stands above $220.51 billion.

political turbulence
BTCUSD Daily Chart

On the Lookout: Reserve Bank of New Zealand (RBNZ), left its Official Cash Rate unchanged at 1.00% as markets expected. 

The Japan BoJ Core CPI for August came in at  0.4%, y/y below expectations of 0.6%

The central bank of China set the Yuan rate (USDCNY) at 7.0724 versus yesterday fix at 7.0729.

Trading Perspective: In forex markets, USD index trades 0.26 per cent higher at 98.59, the Aussie dollar trades 0.39 per cent lower at 0.6777, while Kiwi trades 0.12% lower at 0.6315.

GBPUSD trades 0.45% lower at 1.2428 as we are getting closer to the Brexit deadline. Major support now stands at 1.2078 recent low which if broken might accelerate the slide further towards 1.20. On the upside, immediate resistance now stands at 1.2468 the 100-day moving average while more offers will emerge at 1.2733 the 200-day moving average.

In Pound futures markets open interest increased by 1,700 contracts, volume increased by around 34.000 futures contracts.

EURUSD trades 0.23% lower at 1.0994, after worse than expected German Ifo data. Immediate resistance for the pair stands at 1.1099 the 50-day moving average and then at 1.1172 the 100-day moving average. On the downside, immediate support stands at 1.0992 today’s low and then at 1.0925 YTD low.

USDJPY is trading 0.26% higher at 107.32 having hit the daily low at 106.99 and the daily high at 107.41. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 107.90 the 100-day moving average and then at 109.25 the 200-day moving average. 

In Yen futures markets, open interest increased by 1,700 contracts, volume increased by around 50,200 futures contracts.

USDCAD is trading 0.15 higher at 1.3261 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 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.