Asian markets finished mixed today as Japan’s 1Q Gross Domestic Product came at 0.5% better than economist’s estimates of 0.0%. Meanwhile, Trump threatens Iran in a tweet: “… that will be the official end of Iran”.
The Nikkei225 finished 0.24 percent higher to 21,301; the Hang Seng benchmark in Hong Kong finished 0.59 percent lower at 27,784. The Shanghai Composite lost 0.41 percent to 2,870 while in Singapore the FTSE Straits Times index finished 0.77 percent lower at 3,205. Australian stocks rallied to a fresh 11.5 year high, as investors responded to the Federal Election result. The ASX200 closed at the day’s highs, up 110 points or 1.7% to 6,476, its best one-day performance in three months.
European session started amid geopolitical concerns and the upcoming election in EU. The DAX30 is 0.64 percent lower to 12,161 and CAC40 is 0.84 percent lower at 5,392 while the FTSE MIB in Milan is trading at 1.95 percent lower at 20,702. The London Stock Exchange is giving up 0.60 percent to 7,304 as the no deal Brexit scenario is back on the table.
In commodities markets, crude oil trades higher for at 63.64 after mounting tensions in the Middle East. Brent oil also trades higher at $73.16 per barrel. Gold continues its slide down to the 1275 zone, the two-week low. The precious metal breached the 100-day moving average, and that gave the control back to bears. XAUUSD technical picture is bearish now after yesterday’s sell-off. Gold will find support at 1273, the April low, while more bids will emerge at the 200-day moving average at 1255, on the upside resistance, stands at 1296 the 100-day moving average.
In cryptocurrencies market, the weekend brought back bitcoin (BTCUSD) to recent highs after strong correction last Thursday. The daily low for BTC was at 7,787 and the daily high at 8,305. BTCUSD breached the 50 and 100-hour moving average during the weekend and bulls took control for the short term. Immediate support for BTC stands at $7,644 the 50 hour SMA round figure and then at the 200-hour moving average at 7,147. On the upside, strong resistance stands at 8,300 the high from the Asian session. Ethereum (ETHUSD) also continues higher mirroring BTC to 250, on the upside the immediate resistance stands at 263 the high during the Asian session while the support stands at 236 and the 100 hour SMA, Litecoin (LTCUSD) follows suit at 90.71. The crypto market cap holds above $174.0B.
On the Lookout: In Australia, PM Scott Morrison won re-election, although the incumbent Labor Party had been widely expected to win. Japan’s 1Q Gross Domestic Product came at 0.5% beat expectations of 0.0%.
US technology companies have started cutting off supplies to China’s Huawei to comply with US president Trump’s executive order. These include Google, Intel Corp, Qualcomm, and Broadcom.
In the America economic calendar, we await the Chicago Federal Reserve National Activity index.
Trading Perspective: In forex markets, the US dollar trades higher at 97,75 as traders digest the developments in US-Sine trade war. A stronger US dollar will likely increase the US trade deficit, adding risk that Trump administration continues to target those nations with a significant trade surplus with the US (China – Germany – Europe). The Aussie dollar started the week strong after Prime Minister Scott Morrison registered surprise victory in the general election. Kiwi also trades higher at 0.
GBPUSD looks vulnerable for one more day as it trades at three-month lows. The pair hit the daily low at 1.2723 and the daily high at 1.2756. Bears are in full control now and an attempt to 1.27 looks possible scenario. On the upside, immediate resistance stands at 1.28 and then at the 50-hour moving average around 1.2830.
In Sterling futures the open interest increased for the sixth session in a row on Friday, this time by nearly 7.9K contracts, the volume went up by around 18K contracts.
EURUSD trades at three-week lows at 1.1154. The pair made the Asian high at 1.1167 and the low at 1.1150. The pair breached all major moving averages last Friday and now is looking for support at the yearly low down to 1.1115. On the upside, the immediate resistance stands at 1.1200, while more offers will emerge at 1.1245 the 50-day moving average.
In euro futures the open interest increased nearly 3K contracts to their open interest positions on Friday from Thursday’s final 510,218 contracts, reaching the second consecutive build. Volume rose by around 3.2K contracts.
USDJPY trades lower at 110.03 as traders turn their eyes to safe assets amid renewed China-USA trade worries. Today the pair hit the low at 109.99 and the high at 110.31. The pair will find support at 109.54 Friday low, and on the upside, immediate resistance for the pair stands at 110.31 the high from Asian session and then at 110.50 the 100-day moving average and then at 111.17 the 50-day moving average.
In Yen futures the open interest shrunk for yet another session on Friday, this time by more than 2.1K contracts, while volume went up by around 37.5K.
USDCAD is trading lower the last hours and trades at 1.3435. The pair will find immediate support at the 100-day moving average around 1.3325 while extra support stands at 1.3300 round figure. On the upside, immediate resistance stands at 1.35, while a break above can escalate the rebound towards yearly high at 1.3635.