Asian Indices Higher, EURUSD Consolidates Above 1.10

Asian indices finished higher today after China and USA confirmed that they would restart the trade talks in October. Traders will closely watch the release of the ECB decision this Thursday. The Hang Seng trading 0.03 per cent lower at 26,684, the Nikkei225 in Japan ended 0.51% higher at 21,307. The Shanghai Composite trading 0.59 per cent higher to 3,017, while in Singapore the FTSE Straits Times index finished 0,07 per cent higher at 3,146. The ASX 200 in Australia finished 0.09% higher to 6,653.

European equities started higher today, DAX30 is 0.36 per cent higher to 12,170, CAC40 is 0.25 per cent higher at 5,607 while the FTSE MIB in Milan is 0.16 per cent higher at 21,983. In London FTSE 100 is trading 0.16% higher at 7,282. UK is scheduled to leave the EU on October 31.

XAUUSD Daily Chart

In commodities markets, crude oil trades 1.08 percent higher at $57.13 as traders turn cautious on recent trade war escalation and global growth concerns. Brent oil is trading 0.93% higher at $62,11 per barrel as major oil producers have agreed to cut output. Gold trades slightly higher at 1,509, keeping the bullish momentum as the price holds above all the major daily moving averages. On the upside, strong resistance will be met at 1,555.13 recent high.      

In cryptocurrencies, Bitcoin (BTCUSD) trading lower at 10,274, hitting the daily low at 10,241 and the daily high at 10,417. Bitcoin short term momentum is neutral now as it trades above the 100-day moving average and below the 50-day moving average. Immediate support for BTC stands now at $9,258 recent low, 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) consolidates below recent highs at 176,15 with capitalization now to 19.2 billion, and on the upside, the immediate resistance stands at 317 high while the support stands at 136 the low from May 6th, Litecoin (LTCUSD) trades higher at 68.32. The crypto market cap now stands above $264.5 billion.

On the Lookout: The central bank of China set the Yuan rate (USDCNY) at 7.0851 at the lowest level in 11 years, versus yesterday fix at 7.0855.

In Japan the Eco Watchers Survey came in at 42.8 in August from previous 41.2, the Eco Watchers Survey Outlook came down to 39.7 in August from previous 44.3. Japan Gross Domestic Product (quarter over quarter) came in at 0.3% matching forecasts in 2Q. The yearly reading came in at 1.3% as expected in 2Q, 2019. 

In Australia, Home Loans came in at 5% in July from previous -0.9%. New Zealand Manufacturing Sales dipped from the previous 2% to -2.7% in 2Q.

Trading Perspective: In forex markets, USD index trades 0.42 per cent higher at 98.42, the Aussie dollar trades 0.20 per cent higher at 0.6859, while Kiwi trades 0.06% higher at 0.6427.

GBPUSD trades 0.19% lower at 1.2301. Major support now stands at 1.2078 recent low which if broken might accelerate the slide further towards 1.20. On the upside, immediate resistance now stands at 1.2305 the 50-day moving average while more offers will emerge at 1.2556 the 100-day moving average.

In Sterling futures markets the open interest increased by 4,200 futures contracts while volume went down by 26.600 contracts.

EURUSD trades 0.04% higher and consolidates at 1.1029, after positive signals from the US-China trade war developments. Immediate resistance for the pair stands at 1.1151 the 50-day moving average and then at 1.1264 the 200-day moving average. On the downside, immediate support stands at 1.1015 today’s low and then at 1.0925 YTD low.

In Euro futures markets the open interest increased by 7.300 futures contracts while volume went down to 19.200 contracts.

EURUSD Daily Chart

USDJPY is trading 0.06% higher at 106.98 having hit the daily low at 106.75 and the daily high at 107.07. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 107.16 the 50-day moving average and then at 108.30 the 100-day moving average. 

In Yen futures markets the open interest increased by 922 contracts while volume went down by 19.400 contracts.

USDCAD is trading 0.05 lower at 1.3157 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.