Asian Equities Higher, Gold Consolidates Around 1,490

Asian indices finished mostly higher today as traders expect stimulus from central banks and President Trump announced a two-week delay in tariff hikes in $250 billion in Chinese imports. Traders will closely watch the release of the ECB decision later today. The Hang Seng trading 0.15 per cent lower at 27,118, the Nikkei225 in Japan is 0.98% higher at 21,811. The Shanghai Composite trading 0.20 per cent higher to 3,014, while in Singapore the FTSE Straits Times index finished 0,19 per cent lower at 3,198. The ASX 200 in Australia trading 0.47% higher at 6,669.

European equities started higher today, DAX30 is 0.72 per cent higher to 12,356, CAC40 is 0.21 per cent higher at 5,604 while the FTSE MIB in Milan is 0.42 per cent higher at 21,959. In London FTSE 100 is trading 0.80% higher at 7,326. UK is scheduled to leave the EU on October 31.

gold consolidates
XAUUSD Daily Chart

In commodities markets, crude oil trades 0.88 per cent higher at $56.24 as traders turn cautious on recent trade war escalation and global growth concerns. Brent oil is trading 0.69% higher at $61,23 per barrel as major oil producers have agreed to cut output. Gold consolidates at 1,495 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 while support is at 1,472 the 50-day moving average.     

In cryptocurrencies, bitcoin (BTCUSD) trading almost unchanged at 10,065, hitting the daily low at 10,051 and the daily high at 10,195. 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 the low from August 29, while next support stands at 9,000. On the upside, strong resistance now stands at 12,315 the high from August 6th, and then at 13,500 round figure. Ethereum (ETHUSD) trades flat at 176,54 with capitalization now to 19.2 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 68.71. The crypto market cap now stands above $259.4 billion.

gold consolidates
BTCUSD Daily Chart

On the Lookout: The central bank of China set the Yuan rate (USDCNY) at 7.0843 versus yesterday fix at 7.0846.

Australia’s Westpac-Melbourne Institute Index of Consumer Sentiment came down to 98.2 in September from 100 in August. Japan BSI Large Manufacturing Conditions Index (quarter over quarter) came in at -0.2 in 3Q from the previous reading of -10.4.

Trading Perspective: In forex markets, USD index trades 0.01 per cent higher at 98.63, the Aussie dollar trades 0.27 per cent higher at 0.6880, while Kiwi trades 0.35% higher at 0.6434.

GBPUSD trades 0.02% lower at 1.2326 as we are getting closer to 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 1.2519 the 100-day moving average while more offers will emerge at 1.2740 the 200-day moving average.

EURUSD trades 0.03% higher at 1.1013, ahead of the ECB decision tomorrow later today. Immediate resistance for the pair stands at 1.1136 the 50-day moving average and then at 1.1184 the 100-day moving average. On the downside, immediate support stands at 1.1007 today’s low and then at 1.0925 YTD low.

USDJPY is trading 0.23% higher at 108.05 having hit the daily low at 107.77 and the daily high at 108.16. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 108.14, the 100-day moving average and then at 109.46, the 200-day moving average. 

USDCAD is trading 0.09 lower at 1.3180, 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.