Equities Rally Continues, Bitcoin Price in Bullish Momentum

Asian equities rally higher today on improved sentiment as investors digest the 25 basis point to 1.50%-1.75% from the Fed. The U.S non-farm payrolls rose by better than expected 128,000 for October compared to expectations for an increase of 89,000. GDP for Q3 expanded at a 1.9%, slowing from 2% in the Q2 but came in above market forecasts for growth of 1.6%. 

The Hang Seng index is 0.49% higher at 27,683. The Shanghai Composite is 0.54% higher at 2,991. The ASX 200 in Australia is 0.15% higher at 6,697. Nikkei 225 was closed for a holiday today.

European indices started the day higher. DAX is trading 0.14% higher at 13,154, CAC40 is 0.21 per cent higher at 5,836, while the FTSE MIB in Milan is 0.15 per cent higher at 23,394. In London, FTSE 100 is trading 0.32% higher at 7,393. 

In commodities markets, WTI crude oil trades 0.73 per cent higher at $56.95 as global growth worries weigh on crude. Brent oil is trading 0.92% higher at $62.70 per barrel as oil world supply will be affected by the global slowdown. Gold trades lower at 1,504, as the short term momentum turns bullish 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.     

equities rally
BTCUSD Daily Chart

In cryptocurrencies, Bitcoin (BTCUSD) momentum is positive, the cryptocurrency trades lower today at 9,266, hitting the daily low at 9,106 and the daily high at 9,472. Bitcoin’s 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 184,75 with capitalisation now to 20.18 billion, and on the upside, the immediate resistance stands at 200 recent high while the support stands at 136 the low from May 6th. LTCUSD trades slightly lower at 62.52. The crypto market cap capitalization now stands at $250.50 billion.

On the Lookout: Reserve Bank of Australia kept the cash rate on hold at a record low 0.75%. 

U.S. manufacturing will be released later today for October, together with figures on job openings and trade balance in the US and Canada. 

Yesterday the ANZ Australian Job Ads fell 1.0% m/m in October following a gain of 0.3% m/m in September. Job Ads are now 11.4% lower than a year ago. Australia Retail Sales s.a. (MoM) inline with expectations (0.2%) in September. Australia TD Securities Inflation (MoM) remains unchanged at 0.1% in October.

The central bank of China set the Yuan rate (USDCNH) at 7.0385 versus yesterday settlement at 7.0382.  

Trading Perspective: In fx markets, USD index trades 0.05 per cent higher at 97.60, the AUDUSD trades 0.49 per cent higher at 0.6917, while NZDUSD trades 0.26% higher at 0.6418.

GBPUSD trades 0.15% higher at 1.2901 as we are getting closer to the Brexit deadline on 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 increased by 216 contracts, volume decreased by around 15.400 contracts.

EURUSD trades 0.10% lower at 1.1117 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 1.1073 last week’s low and then at 1.1003.

In euro futures, markets open interest increased by 4.400 contracts, the volume decreased by around 29.100 futures contracts.

equities rally
EURUSD Daily Chart

USDJPY is trading 0.25% higher at 108.83 having hit the daily low at 108.52 and the daily high at 108.89. 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 by 6.600 contracts, volume decreased by around 43,400 futures contracts.

USDCAD is trading 0.19% lower at 1.3124 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.