Asian indices finished lower today ahead of the signing of the phase one trade deal. Investors’ attention will turn on the details of the deal and the components of the second phase deal. Some reports indicate that the U.S. will maintain tariffs on Chinese goods until November’s presidential election.
The Nikkei 225 finished 0.45% lower at 23,916. The Hang Seng finished 0.56% lower at 28,713. The Singapore FTSE Straits Times is 0.42% lower at 3,256 while the Shanghai Composite finished 0.47% lower at 3,092.
European equities started mixed the trading session. The DAX index is 0.14% higher at 13,470. CAC40 is 0.01 lower at 6,036 while the FTSE MIB in Milan is 0.06 per cent lower at 23,882. In London, the FTSE 100 is 0.38% higher at 7,646.
In commodities markets, the crude oil price is 0.22% lower at $58.10 as traders digest the geopolitical risks in the Middle East. Brent oil is 0.22% lower at $64.35 per barrel. Gold price trades 0.30% higher at 1,550. The gold outlook remains bullish despite the recent correction. The immediate resistance stands at 1,611 the recent high, while the support stands at 1,447 the recent low.
In cryptocurrencies markets, Bitcoin retreats today giving up 1.74% at $8,658 hitting the daily low at $8,543 and the daily high at $8,890. BTCUSD’s momentum is positive now at two-month highs as the crypto pair breached above the 100-day moving. Support for BTCUSD stands now at $8,000, while the next support level holds at 7,500.
On the other hand, resistance will be met at 9,925 high and then at 10,000 round figure. Ethereum ETHUSD trades 2.02% lower at 162.58 with capitalization now at 17.86 billion, on the upside resistance for ETHUSD stands at 200 recent high, while the support stands at 117.09 the previous week low, Litecoin is trading 1.52% lower at 57.31. The crypto market capitalization is $239.12 billion.
In the Lookout: Japan Machine Tool Orders (YoY) increased to -33.6% in December from previous -37.9%.
The People’s Bank of China (PBOC) has set the Yuan reference exchange rate at 6.8845 versus yesterday’s fix at 6.8954.
Trading Perspective: In forex markets, the US dollar index trades 0.03 per cent higher at 97.42, the Aussie dollar is 0.19% lower at 0.6888 against the US dollar. NZDUSD trades 0.10% lower at 0.6607. USDCHF is 0.13% lower at 0.9660.
GBPUSD trades 0.19% lower at 1.2991 as we are getting closer to the Brexit deadline on January 31st, 2020. First support for the pound against the US dollar now stands at 1.2578 low which if broken, might push the GBPUSD further down towards 1.20. On the upside, the first resistance will be met at 1.3511 recent high.
EURUSD trades 0.02% lower at 1.1126 as the pair’s short term momentum is neutral now. The first resistance for the EURUSD stands at 1.1224 recent high. On the other hand, support is at 1.1118 today’s low and then at 1.10.
USDJPY is trading 0.09% lower at 109.88, having hit the daily low at 109.81 and the daily high at 110.00. USDJPY will meet support at 105.43 the low from August 22nd. On the upside, initial resistance for the USDJPY now stands at 110.20 recent high.
USDCAD trades 0.09% higher at 1.3073, as the Canadian dollar pressured by weaker crude oil. The pair will meet first support at 1.2950 the recent low while the next support level stands at 1.29 round figure. On the flip side, resistance will be met at the 1.3066 the high from December 31st.
