AUDUSD at Monthly High, Gold Under Pressure

Asian Indices ended mixed today as investors turn cautious amid confusing headlines around the Brexit deal. Meanwhile, doubts emerged about the US and China partial trade deal. China wants to proceed with further discussions before signing the phase one trade deal.

Last week, Fed Chair Jerome Powell signalled further interest rate cuts and the resumption of bond purchases. Traders increased their bets the Fed will slash interest rates at its next meeting on October to protect the economy from slowing growth and the effects of the trade tensions. The Hang Seng index is trading 0.27% lower at 26,769. The Shanghai Composite is 0.67% lower at 2,957, while in Singapore, the FTSE Straits Times is 0.45% lower at 3,112. The ASX 200 in Australia trades 0.62% lower at 6,643.

European indices started lower the day, DAX trading 0.14 lower at 12,639, CAC40 is 0.49 per cent lower at 5,645 while the FTSE MIB in Milan is 0.05 per cent higher at 22,392. In London, FTSE 100 is trading 0.40% lower at 7,154. The UK is scheduled to leave the EU on October 31.

In commodities markets, crude oil trades 0.22 per cent lower at $53.81 as global growth worries weigh on crude. Brent oil is trading 0.50% lower at $59,61 per barrel as oil world supply will be affected by the global slowdown. Gold trades lower at 1,492, as the momentum turns bearish after the price trades below the 50-day moving average. On the upside, strong resistance will be met at 1,555.13 yearly high while support is at 1,458 the recent low.       

monthly high
XAUUSD Daily Chart

In cryptocurrencies, Bitcoin (BTCUSD) momentum is neutral now as BTC trades lower at 7,915, hitting the daily low at 7,821 and the daily high at 8,111. Bitcoin short term momentum is neutral now as it trades above the 200-day moving average. Immediate support for BTC stands now at $7,686 recent low, while next support stands at 7,406 the low from June 2nd. On the upside, strong resistance now stands at 8,801 recent high and then at 9,000 round figure. Ethereum (ETHUSD) trades lower at 172,75 with capitalisation now to 18.95 billion, and 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 53.11. The crypto market cap capitalization now stands above $217.16 billion.

On the Lookout: Japan National Consumer Price Index (YoY) came in at 0.2% below forecasts of 0.4% in September. Japan Foreign Investment in Japan Stocks dipped from previous ¥1072.5B to ¥508.1B on October 11. Data from China disappointed investors as Gross Domestic Product (YoY) below came in at 6% below expectations of 6.1% in 3Q, for the quarter China Gross Domestic Product came in at 1.5% in line with forecasts. The China Retail Sales (YoY) came in at 7.8% in September inline with forecasts. 

The central bank of China set the Yuan rate (USDCNY) at 7.0690 versus yesterday settlement at 7.0789.  

Trading Perspective: In forex markets, USD index trades 0.26 per cent lower at 97.72, the Aussie dollar trades 1.05 per cent at monthly high at 0.6828, while NZDUSD trades 0.61% higher at 0.6329.

monthly high
AUDUSD Daily Chart

GBPUSD trades 0.09% lower at 1.2880 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 1.2988 recent high while more offers will emerge at 1.30 round figure.

In Pound futures markets open interest decreased by 557 contracts, volume decreased by around 40.300 futures contracts.

EURUSD trades 0.01% higher at 1.1125 as the pair momentum now turns bullish.  Immediate resistance for the pair stands at 1.1137 the 100-day moving average. On the downside, immediate support stands at 1.1003 yesterday’s low and then at 1.0835 the low from 2017.

In euro futures markets open interest increased by 6.900 contracts, the volume also increased by around 6.700 futures contracts.

USDJPY is trading 0.03% lower at 108.60 having hit the daily low at 108.51 and the daily high at 108.68. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 108.93 yesterday’s high, and then at 109.06 the 200-day moving average. 

In Yen futures markets open interest decreased by 1.300 contracts, volume decreased by around 9,200 futures contracts.

USDCAD is trading 0.01% lower at 1.3137 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.