Gold Continue Lower, AUDUSD Slumps After RBA Cut Rates

Nikolas Papas

Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).

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Gold Continue Lower, AUDUSD Slumps After RBA Cut Rates

October 1, 2019

Nikkei 225 finished mixed today on improved investors sentiment as the US and China planning to restart negotiations in early October and crude oil price stabilizes. Nikkei benchmark in Tokyo finished 0.59% higher at 21,885. The ASX 200 in Australia ended 0.80% higher at 6,742.

European indices started mixed the day, DAX30 is 0.11 per cent lower at 12,413, CAC40 is 0.21 per cent lower at 5,665 while the FTSE MIB in Milan is 0.56 per cent higher at 22,230. In London, FTSE 100 is trading 0.27% lower at 7,388. UK is scheduled to leave the EU on October 31.

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XAUUSD Daily Chart

In commodities markets, crude oil trades 1.17 per cent higher at $54.70 after the drone strikes in Saudi Arabia oil facilities. Brent oil is trading 1.10% higher at $59,90 per barrel as oil world supply will be affected by the drone attacks. Gold trades lower at 1,466, as the momentum turns neutral after the price trades below the 50-day moving average.  On the upside, strong resistance will be met at 1,555.13 recent high while support is at 1,458 the recent low.       

In cryptocurrencies, Bitcoin (BTCUSD) bearish momentum is intact as BTC trades higher at 8,338, hitting the daily low at 8,146 and the daily high at 8,506. Bitcoin short term momentum is bearish now as it trades below all major daily moving averages. Immediate support for BTC stands now at $7,686 recent low, while the next support stands at 7,406 the low from June 2nd. On the upside, strong resistance now stands at 8,506 today’s high and then at 9,000 round figure. Ethereum (ETHUSD) trades higher at 178,83 with capitalisation now to 19.36 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 higher at 55.73. The crypto market cap capitalization now stands above $222.21 billion.

On the Lookout: Reserve Bank of Australia cut interest rates to 0.75% as expected and opened the door for more cuts. Governor Phillip Lowe expressed optimism by saying that the Australian economy is at a “gentle turning point.”

Japan hiked its consumption tax rate today to 10% from 8%. Japan Tankan Large Manufacturing Index came in at 5, beating forecasts of 2 in 3Q, 2019. 

Trading Perspective: In forex markets, USD index trades 0.05 per cent higher at 99.43, the Aussie dollar slumps 0.72 per cent lower at 0.6701, while Kiwi trades 0.55% lower at 0.6227.

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AUDUSD Hourly (H4) Chart

GBPUSD trades 0.17% higher at 1.2306 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 1.2447 the 100-day moving average while more offers will emerge at 1.2729 the 200-day moving average.

In Pound futures markets open interest increased by 2,400 contracts, volume decreased by around 1.300 futures contracts.

EURUSD trades 0.05% lower at 1.092, as the pair trapped in the descending channel that might drive the price lower. Immediate resistance for the pair stands at 1.1070 the 50-day moving average and then at 1.1156 the 100-day moving average. On the downside, immediate support stands at 1.0878 today’s low and then at 1.0835 the low from 2017.

In euro futures markets open interest increased by 3.700 contracts, volume increased by around 7.000 futures contracts.

USDJPY is trading 0.17% higher at 108.26 having hit the daily low at 108.03 and the daily high at 108.43. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 108.46 the high from September 19th, and then at 109.16 the 200-day moving average. 

In Yen futures markets open interest increased by 1,200 contracts, volume decreased by around 54,800 futures contracts.

USDCAD is trading 0.23 higher at 1.3269 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. 

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