Gold Drops Below $1,500, Asian Equities Mixed

Asian equity indices ended mixed today on upbeat earnings results, and improved sentiment as investors digest the 25 basis point to 1.50%-1.75% from Fed. Yesterday, the US ISM Non-Manufacturing PMI registered at 54.7 topping expectations of 53.5 in October and despite JOLTS Job Openings came in at 7.024M below expectations of 7.028M in September.

US Services PMI came in at 50.6, below forecasts of 51 in October while the Composite PMI came in at 50.9, below forecasts of 51.2. The United States Trade Balance came in at $-52.5B in line with forecasts for September. The Redbook Index (month over month) jumped to 0.3% in November 1st from the previous 0% while the yearly reading came in at 5.5% vs 4.5%. The Hang Seng index is 0.49% higher at 27,683. The Shanghai Composite is 0.54% higher at 2,991. The ASX 200 in Australia is 0.15% higher at 6,697. Nikkei 225 was closed for a holiday today.

The European indices started the day higher. DAX trading 0.14% higher at 13,154, and CAC40 is 0.21 per cent higher at 5,836, while the FTSE MIB in Milan is 0.15 per cent higher at 23,394. In London, FTSE 100 is trading 0.32% higher at 7,393. 

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XAUUSD Daily Chart

In commodities markets, WTI crude oil trades 0.51 per cent higher at $56.94 as global growth worries weigh on crude. Brent oil is trading 0.56% higher at $62.61 per barrel as oil world supply will be affected by the global slowdown. Gold drops lower at 1,486, as the short term momentum turns bearish after the price trades above the 50-day moving average. On the upside, strong resistance stands at 1,555.13 yearly high while support is at 1,458 the recent low.       

In cryptocurrencies, Bitcoin (BTCUSD) momentum is positive, the cryptocurrency trades higher today at 9,353, hitting the daily low at 9,262 and the daily high at 9,384. Bitcoin short term momentum is bullish now as the cryptocurrency trades above the 200-day moving average and above the 50-day moving average. First support for BTC stands now at $7,364 recent low, while next support stands at 7,300 round figure.

On the upside, resistance now stands at 9,925 recent high and then at 10,000 round figure. Ethereum (ETHUSD) trades higher at 191,90 with capitalisation now to 20.90 billion, on the upside, the immediate resistance stands at 200 recent high while the support stands at 136 the low from May 6th, LTCUSD trades slightly higher at 62.18. The crypto market cap capitalization now stands at $253.54 billion.

On the Lookout: Japan Jibun Bank Services PMI came in at 49.7 below forecasts of 50.3 in October. New Zealand Unemployment Rate came in at 4.2% topping forecasts of 4.1% in 3Q, the Participation Rate came in at 70.4%, above expectations of 70.3% in 3Q. New Zealand GDT Price Index came in at 3.7%, above forecasts of 1.9%. 

Reserve Bank of Australia yesterday kept the cash rate on hold at a record low 0.75%

The central bank of China set the Yuan rate (USDCNH) at 7.0080 versus yesterday settlement at 7.0385.  

Trading Perspective: In fx markets, USD index trades 0.10 per cent lower at 97.81, the AUDUSD trades 0.12 per cent higher at 0.6901, while NZDUSD trades 0.12% higher at 0.6382.

GBPUSD trades 0.06% higher at 1.2889 as we are getting closer to the Brexit deadline in January 31st. Major support now stands at 1.2578 recent low which if broken, might accelerate the slide further towards 1.20. On the upside, immediate resistance now stands at 1.3010 recent high while more offers will emerge at 1.3050 round figure.

In Sterling futures markets, open interest decreased by 611 contracts, volume increased by around 8.500 contracts.

EURUSD trades 0.14% higher at 1.1090 as the pair’s momentum is bullish. Immediate resistance for the common currency stands at 1.1172 recent high. On the downside, first support stands at 1.1073 last week’s low and then at 1.1003.

In euro futures markets, open interest increased by 4.800 contracts, the volume increased by around 40.000 futures contracts.

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EURUSD Daily Chart

USDJPY is trading 0.14% lower at 109.004 having hit the daily low at 108.90 and the daily high at 109.17. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 109.06 recent high.

In Yen futures markets, open interest increased for by 13.800 contracts, volume increased by around 51,000 futures contracts.

USDCAD is trading 0.04% higher at 1.316111 the pair will find immediate support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the upside, first resistance now stands at the 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.