Crude Oil Slumps

Asian Indices Mixed, Crude Oil Higher

Asian indices finished mixed the first trading session of the week close to 20-month highs. Investors’ sentiment was supported by the signing of the phase-one trade deal, and the fresh record highs in Wall Street. The Nikkei 225 closed up 0.18% at 24,083.

The Hang Seng finished 0.90% lower at 28,795. The Singapore FTSE Straits Times is 0.03% lower at 3,280 while the Shanghai Composite finished 0.66% higher at 3,095. The ASX200 index in Australia ended with another record high at 7079.   

European indices started lower the trading week. The DAX index is 0.04% lower at 13,519. CAC40 is 0.32 lower at 6,080, while the FTSE MIB in Milan is 0.43 per cent lower at 24,037. In London, the FTSE 100 is 0.43% lower at 7,641.  

In commodities markets, the crude oil price is 0.84% higher at $59.07 after the shut down of two oil-producing facilities in Libya. Brent oil is 0.57% higher at $65.22 per barrel. Gold price trades 0.18% lower at 1,559. The gold outlook is 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, the correction continues for the second day. Bitcoin gives up 0.58% at $8,641 hitting the daily low at $8,422 and the daily high at $8,736. BTCUSD momentum is neutral now as the crypto pair breached below the 200-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 1.16 lower at 164.79 with capitalization now at 18.09 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 3.04% lower at 57.05. The crypto market capitalization is $237.26 billion.

In the Lookout: Japan Capacity Utilization came in at -0.3%, below forecasts of 0.7% in November. The Japan Industrial Production (MoM) came in at -1%, also below estimates of -0.9% in November.

Fitch credit rating agency affirmed Germany at AAA, with a stable outlook

The People’s Bank of China (PBOC) has set the Yuan reference exchange rate at 6.8664 versus yesterday’s fix at 6.8878.

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AUDUSD Daily Chart

Trading Perspective: In fx markets, the US dollar index trades 0.04 per cent higher at 97.67, the Aussie dollar is 0.10% higher at 0.6866 against the US dollar. NZDUSD trades 0.01% lower at 0.6609. USDCHF is 0.15% higher at 0.9687.

GBPUSD trades 0.10% lower at 1.2991 after weaker than expected retail sales and 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 0.01% lower at 1.1087 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 1.1081 today’s low and then at 1.10.

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EURUSD Daily Chart

USDJPY is trading 0.05% higher at 110.18, having hit the daily low at 110.07 and the daily high at 110.21. USDJPY will meet support at 105.43 the low from August 22nd. On the upside, initial resistance for the USDJPY now stands at 110.28 recent high.

USDCAD trades 0.02% higher at 1.3066, ahead of the BOC decision later this week. 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