In Asia, stock indices ended lower today as trade talk optimism fades away after President Donald Trump threatened to increase tariffs further if China would not agree to a trade deal. Traders await minutes of the Fed’s last policy meeting where it cut interest rates and signalled a pause for the upcoming months.
The Hang Seng index is 0.62% lower at 26,943. The Singapore FTSE Straits Times Index ended 0.14% lower at 3,235 while the Shanghai Composite is 0.42% lower at 2,921. Nikkei 225 ended 0.62% lower at 23,148. The ASX 200 in Australia slumped by 1.35% lower at 6,722.
European indices started the day lower, DAX trading 0.89% lower at 13,100, CAC40 is 0.66 per cent lower at 5,870 while the FTSE MIB in Milan is 0.49 per cent lower at 23,217. In London, FTSE 100 is trading 1.08% lower at 7,244.
In commodities, crude oil trades 0.14 per cent lower at $55.27 as global growth worries pressures black gold. Brent oil is trading 0.30% lower at $60.73 per barrel as crude oil world demand will be affected by the global slowdown. Gold jumps higher to 1,474, as the short term momentum is bearish now after the gold price trades below the 50 and 100-day moving average. On the upside, resistance stands at 1,555.13 yearly high while support is at 1,448 the recent low.
In cryptocurrencies, Bitcoin (BTCUSD) trades lower today at 8,102, hitting the daily low at 8,030 and the daily high at 8,143. BTCUSD momentum is bearish now as the cryptocurrency trades above the 200-day moving average but below the 50 and 100-day moving averages. First support for bitcoin stands now at $7,364 recent low, while the next support stands at 7,300 round figure.
On the upside, resistance stands at 9,925 recent high and then at 10,000 round figure. Ethereum – ETHUSD trades lower at 175,48 with capitalisation now to 19.34 billion, immediate resistance for ETH stands at 200 recent high while the support stands at 136 the low from May 6th, LTCUSD trades lower at 59.53. The crypto market capitalization has dropped to $224.54 billion.
On the Lookout: Fitch rating agency has affirmed China’s Long-Term Foreign-Currency Issuer Default Rating at ‘A+’ with a Stable outlook. Fitch also forecasts that growth will slow to 5.7% in 2020, from 6.1% in 2019.
Japan Imports (YoY) came in at -14.8%, topping forecasts of -16% in October, while Japan Exports (YoY) came in at -9.2%, below forecasts of -7.6% in October.
Australia – Westpac leading indicator for October came in at -0.07% m/m the previous reading was -0.12%.
The central bank of China (PBOC) set the Yuan rate (USDCNH) at 7.0118 versus yesterday’s settlement at 7.0030.
Trading Perspective: In fx markets, USD index trades 0.07 per cent higher at 97.90, the AUDUSD trades 0.15 per cent lower at 0.6815, while NZDUSD trades 0.14% lower at 0.6421. USDCHF IS 0.05% lower at 0.9899.
GBPUSD trades 0.11% lower at 1.2911 as we are getting closer to the Brexit deadline on January 31st, 2020. Support for the pair now stands at 1.2578 recent low which if broken, might accelerate the slide further towards 1.20. On the upside, first resistance will be met at 1.3010 recent high while more offers will emerge at 1.3050 round figure.
In Pound futures contracts markets, open interest decreased by 428 contracts, while the volume decreased by around 9.800 contracts.
EURUSD trades 0.06% lower at 1.1072 as the pair’s momentum has turned positive. Immediate resistance for the common currency stands at 1.1172 recent high. On the downside, the first support stands at 1.1014 today’s low and then at 1.1003.
In euro futures markets, open interest increased by 2,700 contracts, the volume decreased by around 22.900 futures contracts.
USDJPY is trading 0.03% lower at 108.50 having hit the daily low at 108.34 and the daily high at 108.57. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, resistance for the USDJPY now stands at 109.06 recent high.
In Yen futures markets, open interest increased by 613 contracts, volume decreased by around 14,100 futures contracts.
USDCAD is trading 0.11% higher at 1.3281 the pair will find support at 1.3017 the yearly low while extra support stands at 1.30 round figure. On the upside, resistance will be met at the 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.