Asian Indices Mixed

Asian Equities Rebound, Gold Breaks Above 1,500

Asian stocks rebound today after better trade numbers from China for the month of July and despite the recent escalation in US-China trade tensions, while USDCNH breaks above the 7 level. The Nikkei225 finished 0.50 percent higher at 20,618, the Hang Seng trading 0.59 percent higher at 26,151. The Shanghai Composite ended 1.02 percent higher to 2,797, while in Singapore, the FTSE Straits Times index finished 0,44 percent lower to 3,171. Australian equities trade higher, the ASX 200 is trading 0.31% higher to 6,539.

European equities started higher the day, DAX30 is adding 0.72 percent to 11,650, CAC40 is 0.61 percent higher at 5,266 while the FTSE MIB in Milan is trading 0.45 percent lower at 20,656. The London Stock Exchange is 0,10% percent higher to 7,206.

XAUUSD Daily Chart

In commodities markets, crude oil trades 3.27 percent higher at $52.76 as traders turn cautious on recent trade war escalation and global growth concerns. Brent oil is trading 2.92% higher at $57,87 per barrel despite major oil producers have agreed to cut output. Gold makes fresh highs at 1,500 keeping the bullish momentum as the price holds above all the major daily moving averages. On the upside, strong resistance will be met at 1,506.67 high.      

In cryptocurrencies, Bitcoin (BTCUSD) trades higher at 11,826, hitting the daily low at 11,731 and the daily high at 12,063. Bitcoin trades above the 50-day moving average and holds a positive momentum for the short term. 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 slightly lower at 223 with capitalization now to 24.1 billion, on the upside the immediate resistance stands at 317 Friday’s high while the support stands at 200 round figure, Litecoin (LTCUSD) also trades lower at 89.05. The crypto market cap now stands above $304.6 billion.

On the Lookout: Central banks in Thailand, New Zealand and India have cut official interest rates in the past 24 hours to shore up their economies given escalation US-China trade tensions.

Reserve Bank of New Zealand yesterday cut aggressively the interest rates by 50bp to 1.00%, while the market forecasting a 25bp cut. The Monetary Policy Committee expects growth to remain soft. Domestic demand is under pressure from a slowing housing market and subdued business confidence. The central bank has revised its GDP forecasts lower accordingly by -0.3 to -0.5 through the second quarter of next year.

Trading Perspective: In forex markets, USD trades 0.11 percent lower at 97.53, the Aussie dollar trades 0.21 percent higher at 0.6772, while Kiwi rebounds to 0.6453.

GBPUSD trades 0.23% higher at 1.2167. 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 1.2521, the 50-day moving average, while more offers will emerge at 1.2756 the 100-day moving average.

EURUSD trading 0.20% higher at 1.1221, facing now the strong resistance at 1.1249 recent 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 the weekly low. 

USDJPY is trading 0,20% lower at 106.04 having hit the daily low at 105.99 and the daily high at 106.29. 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 0.12 lower at 1.3285 and consolidates around the recent highs; 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 1.3314 zone before an attempt to 1.3450 high from 31st May.