Sino-U.S. trade talks

Equities Continue Higher, Gold Retreats

Asian equity indices ended mixed today after the meeting between U.S. President Trump and Chinese President Xi Jinping to sign an interim deal could be delayed until December as discussions continue over terms.

The Hang Seng index is 0.57% higher at 27,847. The Singapore FTSE Straits Times Index is 0.47% higher at 3,277 while the Shanghai Composite is 0.01% higher at 2,978. The ASX 200 in Australia ended 1.00% higher at 6,726. Nikkei 225 registered small gains at 23,330.

European indices started the day higher, DAX trading 0.55% higher at 13,256, CAC40 is 0.30 per cent higher at 5,884, while the FTSE MIB in Milan is 0.51 per cent higher at 23,491. In London, FTSE 100 is trading 0.32% higher at 7,420. 

XAUUSD Daily Chart

In commodities markets, WTI crude oil trades 0.64 per cent higher at $56.71 as global growth worries weigh on crude. Brent oil is trading 0.55% higher at $62.08 per barrel as oil world supply will be affected by the global slowdown. Gold trades lower at 1,487, as the short term momentum turns bearish after the price trades above the 50-day moving average. On the upside, strong resistance stands at 1,555.13 yearly high while support is at 1,458 the recent low.       

In cryptocurrencies, Bitcoin (BTCUSD) momentum is positive, the cryptocurrency trades lower today at 9,240, hitting the daily low at 9,167 and the daily high at 9,364. Bitcoin short term momentum is bullish now as the cryptocurrency trades above the 200-day moving average and above the 50-day moving average. First support for BTC stands now at $7,364 recent low, while next support stands at 7,300 round figure.

On the upside, resistance now stands at 9,925 recent high and then at 10,000 round figure. Ethereum (ETHUSD) trades lower at 187,45 with capitalisation now to 20.44 billion, on the upside, the immediate resistance stands at 200 recent high while the support stands at 136 the low from May 6th, LTCUSD trades flat at 62.30. The crypto market cap capitalization now stands at $249.82 billion.

On the Lookout: Australia Trade Balance came in at 7180M beating forecasts of 5000M in September.

Yesterday the Japan Jibun Bank Services PMI came in at 49.7 below forecasts of 50.3 in October. New Zealand Unemployment Rate came in at 4.2% topping forecasts of 4.1% in 3Q, the Participation Rate came in at 70.4%, above expectations of 70.3% in 3Q. New Zealand GDT Price Index came in at 3.7%, above forecasts of 1.9%. 

Earlier this week the Reserve Bank of Australia yesterday kept the cash rate on hold at a record low 0.75%. 

The central bank of China set the Yuan rate (USDCNH) at 7.00088 versus yesterday settlement at 7.0080.  

Trading Perspective: In fx markets, USD index trades 0.05 per cent higher at 97.89, the AUDUSD trades 0.192 per cent higher at 0.6896, while NZDUSD trades 0.01% higher at 0.639.

GBPUSD trades 0.08% higher at 1.2865 as we are getting closer to the Brexit deadline in January 31st. Major support now stands at 1.2578 recent low which if broken, might accelerate the slide further towards 1.20. On the upside, immediate resistance now stands at 1.3010 recent high while more offers will emerge at 1.3050 round figure.

In Sterling futures markets open interest decreased by 4,000 contracts, volume increased by around 14.200 contracts.

EURUSD trades 0.09% higher at 1.1076 as the pair’s momentum is bullish. Immediate resistance for the common currency stands at 1.1172 recent high. On the downside, first support stands at 1.1054 today’s low and then at 1.1003.

In euro futures markets open interest increased by 720 contracts, the volume decreased by around 58.700 futures contracts.

EURUSD Daily Chart

USDJPY is trading 0.1% higher at 109.08 having hit the daily low at 108.64 and the daily high at 109.11. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 109.06 recent high.

In Yen futures markets open interest increased for by 3.500 contracts, volume decreased by around 26,000 futures contracts.

USDCAD is trading 0.14% lower at 1.3162 the pair will find immediate support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the upside, the first resistance now stands at the 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.