Sino-U.S. trade talks

GBPUSD Slumps, Gold Higher

Asian indices finished mixed today as trade tensions between the China and USA ease. President Trump on Friday announced the increase of tariffs on $250 billion of Chinese goods to 30% from 25% starting Oct. 1, and above that, he will hike tariffs on another $300 billion in Chinese imports to 15% from 10%.

The Hang Seng trading 0.19 percent lower at 25,615, Nikkei225 in Japan ended 0.11% higher at 20,479. The Shanghai Composite trading 0.29 percent lower to 2,893, while in Singapore the FTSE Straits Times index finished 0,36 percent lower to 3,056. Australian equities ended higher, the ASX 200 finished 0.50% higher to 6,500.

European equities started lower today, DAX30 is 0.51 percent lower to 11,670, CAC40 is 0.50 percent lower at 5,360 while the FTSE MIB in Milan is 0.10 percent lower at 20,967. In London FTSE 100 is trading 0.36% higher at 7,114.  

XAUUSD Daily Chart

In commodities markets, crude oil trades 1.37 percent higher at $55.68 as traders turn cautious on recent trade war escalation and global growth concerns. Brent oil is trading 0.98% higher at $59,61 per barrel despite major oil producers have agreed to cut output. Gold trades higher at 1,542 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) consolidates around 10,141, hitting the daily low at 10,016 and the daily high at 10,198. Bitcoin cancels the bullish momentum as it trades below the 50-day moving average. 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) trades lower at 184, with capitalization now to 20.05 billion, on the upside the immediate resistance stands at 317 high while the support stands at 172 recent low, Litecoin (LTCUSD) also trades flat at 72.37. The crypto market cap now stands above $263.9 billion.

On the Lookout: Australia Construction Work Done came in at -3.8%, below forecasts of -1% in 2Q, 2019.

The Germany Gfk Consumer Confidence Survey came in at 9.7, topping forecasts of 9.6 in September, while the Import Price Index (month over month) came in at -0.2%, below forecasts of 0% in July. 

The central bank of China set the Yuan rate (USDCNY) at 7.0835 at the lowest level in 11 years, versus yesterday fix at 7.0810.


Trading Perspective: In forex markets, USD index trades 0.10 percent higher at 98.10, the Aussie dollar trades 0.12 percent lower at 0.6743, while Kiwi trades 0.32% lower to 0.6340.

GBPUSD slumps and trades 0.57% lower at 1.2217. Major support now stands at 1.2155 the daily low which if broken might accelerate the slide further towards 1.20. On the upside immediate resistance now stands at 1.2370 the 50-day moving average while more offers will emerge at 1.2602 the 100-day moving average.

GBPUSD Hourly (H1) Chart

EURUSD trades 0.02% lower at 1.1087, after mixed signals from the US-China trade war developments. Immediate resistance for the pair stands at 1.1203 the 50-day moving average and then at 1.1278 the 200-day moving average. On the downside, immediate support stands at 1.1082 today’s low and then at 1.1026 the YTD low. 

USDJPY is trading flat at 105.72 having hit the daily low at 105.64 and the daily high at 105.88. USDJPY pair will find support at 105.64 today’s low. On the upside, immediate resistance for the pair now stands at 107.41 the 50-day moving average and then at 108.74 the 100-day moving average. 

USDCAD is trading 0.20 higher at 1.3308, 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 1.3318 the daily high before an attempt to 1.3450 high from 31st May.