Asian indices finished mixed today as US Treasury Secretary, Steve Mnuchin, announced that top US officials would hold a second phone call with their Chinese counterparts: “to the extent we make significant progress, I think there’s a good chance we’ll go there later.”
The NIKKEI225 ended 0.69 percent lower at 21,535; the Hang Seng finished 0.23 percent higher at 28,619. The Shanghai Composite finished 0.16 percent lower to 2,937, while in Singapore the FTSE Straits Times index finished 0.21 percent higher to 3,354. Australian equities ended near intraday lows all while extending the market’s losing streak to three days. The ASX 200 eased by 0.18 percent to 6641. RBA Board minutes were released this morning for the July meeting. The central bank cut interest rates for the second straight month by 25bps to support the job market. In the minutes the RBA Board admitted it would take ‘some time’ to erode spare capacity in the labour market.
European equities started the day slightly higher, DAX30 is adding 0.15 percent to 12,402, CAC40 is 0.16 percent higher at 5,587 while the FTSE MIB in Milan is trading 0.05 percent higher at 22,191. The London Stock Exchange is 0,21 percent higher to 7,547 amid non-deal Brexit worries.
In commodities markets, crude oil trades 0.15 percent lower at $60.20 as traders turn cautious on recent highs. Brent oil trades 0.30% higher at $66,72 per barrel despite major oil producers have agreed to cut output. Gold trades higher at 1,412 keeping the bullish momentum as the price holds above all the major daily moving averages. On the upside, strong resistance will be met at 1,427 the daily high and then at 1,437 recent high.
In cryptocurrencies market, after comments from President Trump that he didn’t like bitcoin and other cryptocurrencies last Friday, bitcoin (BTCUSD) traded at 10,673, hitting the daily low at 10,488 and the daily high at 11,071. Immediate support for BTC stands now at $9,843 yesterday’s low while next support stands at 9,000. On the upside, strong resistance now stands at 13,138 the high from Friday and then at 13,500 round figure. Ethereum (ETHUSD) trades flat at 224 with capitalization now to 24.2 billion. On the upside, the immediate resistance stands at 317 Friday’s high while the support stands at 203 the 100-day moving average, Litecoin (LTCUSD) also trades flat at 89.72. The crypto market cap now stands above $286.3 billion.
On the Lookout: The International Monetary Fund, cut its 2019 economic growth forecast for Singapore to 2% from 2.3% as global trade war escalates. IMF expects Singapore’s economic growth to stabilize around 2.5% over the medium term.
The New Zealand Consumer Price Index (quarter over quarter) matched forecasts of 0.6% in the second quarter of 2019 the previous reading was 0.1%. The Consumer Price Index (year over year) also came in line with forecasts of 1.7% in the second quarter of 2019, from 1.5%.
In the US trading session, we have the Retail Sales m/m, the Core Retail Sales m/m, the Import and Export Price Index m/m to be released at 12:30GMT. The Fed Industrial Production m/m, and the Fed Capacity Utilization Rate are due at 13:15GMT while at 14:00GMT the Business Inventories m/m and the NAHB Housing Market Index will be published.
Trading Perspective: In forex markets, USD trades 0.33 percent higher at 97.24, the Aussie dollar trades lower at 0.7024 after the RBA published the minutes of its July 2, 2019, monetary policy meeting on Tuesday, while Kiwi trades flat at 0.6716.
GBPUSD dives 0.79 percent lower at 1.2416 a level that we haven’t seen since April 2017. Major support now stands at 1.24 which if broken might accelerate the slide further towards 1.23 round figure. On the upside immediate resistance now stands at 1.2696 the 50-day moving average while more offers will emerge at 1.2894 the 200-day moving average.
Sterling futures markets open interest increased by 415 contracts while volume decreased by 10,000 contracts.
EURUSD breaks below the 50-day moving average at 1.1242 and eyes the 1.12 mark which if the pair manages to close below will open the way to yearly low. On the upside, immediate resistance for the pair stands at 1.1253 the 100-day moving average while extra resistance will be met at 1.1283 the high from yesterday.
Euro futures markets open interest increased by 2,300 contracts while volume decreased by 38,000 contracts.
USDJPY is trading 0.01 percent higher at 107.95 having hit the daily low at 107.81 and the daily high at 108.09. USDJPY pair will find support around 107.79 round figure and then at 107.50. On the upside, immediate resistance for the pair now stands at 108.98 the recent high and then at 110.04 the 100-day moving average.
USDCAD finally manages to rebound from the lows around 1.30 close to yearly low above 1.3054 amid broadly USD strength, and 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.