European Equities Start Higher, AUDUSD Rebounds

Asian stocks continue lower today as trade war tensions escalate after President Trump announced that the US would impose a 10.0% tariff on the remaining $300.0bn-worth of Chinese products. The Nikkei225 is down 0.68 percent lower at 20,578, the Hang Seng trading 1.01 percent lower at 25,884. The Shanghai Composite ended 1.28 percent lower to 2,784, while in Singapore the FTSE Straits Times index finished 0,77 percent lower to 3,169. Australian equities trade lower for the fifth trading session, and the ASX 200 is trading 2.21% lower to 6,493.

European equities started slightly higher the day, DAX30 is adding 0.34 percent to 11,698, CAC40 is 0.40 percent higher at 5,263 while the FTSE MIB in Milan is trading 0.10 percent higher at 20,795. The London Stock Exchange is 0,22% percent lower to 7,209.

In commodities markets, crude oil trades 1.08 percent higher at $55.28 as traders turn cautious on recent trade war escalation and global growth concerns. Brent oil is trading 1.04% higher at $60,43 per barrel despite major oil producers have agreed to cut output. Gold continues higher at 1,464, keeping the bullish momentum as the price holds above all the major daily moving averages. On the upside, strong resistance will be met at 1,474.79 high.      

In cryptocurrencies, Bitcoin (BTCUSD) keeps the bullish momentum and trades at 11,862, hitting the daily low at 11,551 and the daily high at 11,887. Bitcoin trades above the 50-day moving average, and now the momentum is positive for the short term, the previous two times it managed to rebound from that point. Immediate support for BTC stands now at $9,439 the low from July 30, while next support stands at 9,000. On the upside, strong resistance now stands at 13,138 recent high and then at 13,500 round figure. Ethereum (ETHUSD) adds 2 dollars to rest at 229 with capitalization now to 24.7 billion, and on the upside, the immediate resistance stands at 317, Friday’s high, while the support stands at 200 round figure. Litecoin (LTCUSD) trades higher at 96.05. The crypto market cap now stands above $310.6 billion.

On the Lookout: The RBA kept the interest rate unchanged at 1.00% at a record low as expected by markets. 

AUDUSD Rebounds
AUDUSD Daily Chart

Australia Trade Balance came in at 8036M above expectations of 6000M in June. Japan June preliminary leading indicator index came in at 93.3 below expectations of 93.5. New Zealand RBNZ  Inflation Expectations (QoQ) declined to 1.86% in 3Q from previous 2.01% reading.

Trading Perspective: In forex markets, USD trades 0.17 percent higher at 97.58, AUDUSD trades 0.41 percent higher at 0.6782, while Kiwi traded higher at 0.6530.

GBPUSD started the week 0.14% higher at 1.2155. Major support now stands at 1.2089 Thursday’s low which if broken might accelerate the slide further towards 1.2050. On the upside, immediate resistance now stands at 1.2530 the 50-day moving average while more offers will emerge at 1.2756 the 100-day moving average.

In Pound futures markets open interest increased by 3,700 contracts while volume increased by 28,300 futures contracts.

AUDUSD Rebounds
GBPUSD Daily Chart

EURUSD trading 0.02% higher at 1.1102, facing now the strong resistance at 1.1249 the today’s high, which if the pair manages to close above will open the way to 1.1297 the 200-day moving average. On the downside, immediate support stands at 1.1186 today’s low. 

Euro futures markets open interest decreased by 3,100 contracts while volume increased by 23,800 futures contracts.

USDJPY is trading 0,46% higher at 106.46 having hit the daily low at 105.51 and the daily high at 107.08. USDJPY pair will find support around 105.50 round figure and then at 105. On the upside, immediate resistance for the pair now stands at 108.08, the 50-day moving average, and then at 109.46, the 100-day moving average. 

USDCAD is trading 0.04 lower at 1.3198 and retreats from recent highs, helped by the rebound in crude oil prices, Canada’s main export item, which seems to have added further weakness in the USD. 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 1.3242 zone before an attempt to 1.3450 high from 31st May.