Asian Equities Higher, GBPUSD Retreats from Three-Month Highs

Asian Indices ended higher today as the US and China achieved a partial trade deal. Last week, the Fed Chair Jerome Powell signalled further interest rate cuts and the resumption of bond purchases.

Traders increased their bets that the Fed will slash interest rates at its next meeting on October to protect the economy from slowing growth and the effects of the trade tensions. The Hang Seng index is trading 0.81% higher 26,521. The Shanghai Composite is 1.15% higher at 3,007, while in Singapore, the FTSE Straits Times is 0.30% higher at 3,123. The ASX 200 in Australia ended 0.54% higher at 6,642.

European indices started lower the day, DAX trading 0.65 lower at 12,429, CAC40 is 0.80 per cent lower at 5,619 while the FTSE MIB in Milan is 0.55 per cent lower at 22,047. In London FTSE 100 is trading 0.44% lower at 7,215. The UK is scheduled to leave the EU on October 31.

In commodities markets, crude oil trades 0.90 per cent lower at $54.21 as global growth worries weigh on crude. Brent oil is trading 1.02% lower at $59,89 per barrel as oil world supply will be affected by the global slowdown. Gold trades higher at 1,489, as the momentum turns bearish after the price trades below the 50-day moving average. On the upside, strong resistance will be met at 1,555.13 recent high while support is at 1,458 the recent low.       

In cryptocurrencies, Bitcoin (BTCUSD) momentum is neutral now as BTC trades higher at 8,296, hitting the daily low at 8,129 and the daily high at 8,333. Bitcoin short term momentum is neutral now as it trades above the 200-day moving average. Immediate support for BTC stands now at $7,686 recent low, while next support stands at 7,406 the low from June 2nd. On the upside, strong resistance now stands at 8,801 recent high and then at 9,000 round figure. Ethereum (ETHUSD) trades lower at 181,77 with capitalisation now to 19.90 billion, on the upside, the immediate resistance stands at 317 high while the support stands at 136 the low from May 6th, Litecoin (LTCUSD) trades lower at 55.96. The crypto market cap capitalization now stands above $225.97 billion.

On the Lookout: China Imports (year over year) came in at -8.5%, below forecasts of -5.2% in September. China Trade Balance CNY came up to 275.15B in September from previous 239.6B.

The central bank of China set the Yuan rate (USDCNY) at 7.0725 versus yesterday settlement at 7.0727.  

Trading Perspective: In forex markets, USD index trades 0.12 per cent higher at 98.46, the Aussie dollar trades 0.38 per cent lower at 0.6764, while Kiwi trades 0.57% lower at 0.6299.

three-month highs
GBPUSD Daily Chart

GBPUSD retreats from three-month highs and trades 0.58% lower at 1.2571 as we are getting closer to the Brexit deadline. 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 1.2466 the daily high while more offers will emerge at 1.2711 the 200-day moving average.

In Pound futures markets open interest decreased by 148 contracts, volume increased by around 66.800 futures contracts.

EURUSD trades 0.04% lower at 1.1030, as the pair trades for the third day out of the descending channel. Immediate resistance for the pair stands at 1.1047 the 50-day moving average and then at 1.1141 the 100-day moving average. On the downside, immediate support stands at 1.1003 today’s low and then at 1.0835 the low from 2017.

In euro futures markets open interest increased by 2.200 contracts, volume increased by around 28.300 futures contracts.

USDJPY is trading 0.16% lower at 108.26 having hit the daily low at 108.17 and the daily high at 108.512. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 108.51 the daily high, and then at 109.06 the 200-day moving average. 

In Yen futures markets open interest increased by 6.800 contracts, volume increased by around 1,400 futures contracts.

three-month highs
USDJPY Daily Chart

USDCAD is trading 0.1% lower at 1.3206 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.