Asian indices ended mixed in the trading session as optimism on Phase One deal between China and the USA continues while robust economic data also helps lift investors sentiment.
Political clarity in the UK has boosted sentiment in Europe. Nikkei 225 index ended 0.55% lower at 23,934. The Hang Seng index is 0.11% lower at 27,806. The Singapore FTSE Straits Times benchmark is 0.41% higher at 3,213 while the Shanghai Composite is 0.31% lower at 3,013. The ASX 200 finished 0.06% higher at 6,851.
European indices started the session lower, DAX is 0.38% lower at 13,356, the CAC40 is 0.21 per cent lower at 5,978, while the FTSE MIB in Milan is 0.01 per cent higher at 23,524. In London, FTSE 100 is 0.13% lower at 7,509 as the GBPUSD trades lower at 1.3201.
In commodities markets, crude oil trades 0.72 per cent lower at $60.50 close to two-month highs after OPEC agreed to reduce oil output by 500,000 barrels per day until June. The API report showed an increase of 4.7 mbpd above the expectations of 1.28 mbpd.
Brent oil is trading 0.51% lower at $65.76 per barrel on improved global growth prospects. Gold prices trade 0.08% higher at 1,477.30, on renewed Brexit worries. The short term momentum is neutral after the gold prices trade above the 20-day moving average and below the 50 and 100-day moving averages. On the upside, significant resistance stands at 1,555.13 YTD high while support is at 1,448 the recent low.
In crypto markets, Bitcoin continues the correction below the $7,000 mark hitting the daily low at $6,538 and the daily high at 6,708. Bitcoin momentum has bearish as the cryptocurrency trades below the 100 and 200-day MA. First support for BTCUSD stands now at $6,510 recent low, while the next support holds at 6,000 round figure.
On the other side, resistance stands at 9,925 high and then at 10,000 round figure. ETHUSD also trades lower at 121.49 with capitalization now at 13.52 billion, on the upside resistance for Ethereum stands at 200 recent high while the support stands at 117.09 daily low, Litecoin (LTCUSD) is also under selling pressure at 36.81. The crypto market cap capitalization has dropped at $179.84 billion.
In the Lookout: Australia Westpac Leading Index (MoM) declined to -0.09% in November from previous -0.08%
Japan Merchandise Trade Balance Total came in at ¥-82.1B above expectations of ¥-369B in November. The Imports (YoY) came in at -15.7%, below forecasts of -12.7%, the Exports (YoY) came in at -7.9% beating expectations of -8.6% in November.
PBOC lowers rate on a 14-day reverse to 2.65% versus the previous 2.70%.
The central bank of China (PBOC) set the Yuan reference exchange rate (USDCNH) at 6.9969 versus yesterday’s settlement at 6.9971.
Trading Perspective: In forex markets, the US dollar index trades 0.12 per cent higher at 97.30, the Aussie dollar trades 0.03 per cent higher at 0.6849, while NZDUSD trades 0.16% lower at 0.6563. USDCHF is 0.12% higher at 0.9811.
GBPUSD trades 0.18% lower at 1.3105 as we are getting closer to the Brexit deadline on January 31st, 2020. First support for the pound against the dollar now stands at 1.2578 low which if broken, might push the pair further down towards 1.20. On the upside, the first resistance will be met at 1.3511 recent high.
EURUSD trades 0.11% lower at 1.1136 as the pair’s momentum has turned positive for the short term. The first resistance for the eurodollar stands at 1.1199 recent high. On the other hand, the first support is at 1.1127 today’s low and then at 1.11.
USDJPY is trading 0.03% lower at 109.44 in a narrow trading range, having hit the daily low at 109.40 and the daily high at 109.56. USDJPY pair will meet support at 105.44 the low from August 22nd. On the upside, resistance for the USDJPY now stands at 109.69 recent top.
USDCAD is trading 0.02% higher at 1.3162, the pair will meet support at 1.3017 the yearly low while the next support stands at 1.30 round figure. On the upside, resistance will be met at the 1.3355 the top from September 3rd before an attempt to 1.3450 high from 31st May.