Gold Gains, Equities Retreat and Bitcoin Back Below 8,000 

Asian Indices ended lower today after the UK Parliament voted the Brexit plan but rejected the timetable to take the UK out of the EU.

Investors turn cautious in equities after a revenue warning from Texas instruments. Fed Chair Jerome Powell signalled further interest rate cuts and the resumption of bond purchases. Investors increased their bets that the Fed will cut interest rates BY 25 bp at its next meeting in October to protect the economy from slowing growth and the effects of the trade tensions.

The Hang Seng index is 0.81% lower at 26,786. The Shanghai Composite is 0.08% lower at 2,951, while in Singapore, the FTSE Straits Times is 0.60% lower at 3,142. The ASX 200 in Australia is 0.35% lower at 6,648.

European indices started the day lower. DAX is trading 0.23% lower at 12,722, CAC40 is 0.56 per cent lower at 5,625 while the FTSE MIB in Milan is 0.38 per cent lower at 22,400. In London, FTSE 100 is trading 0.01% lower at 7,212. The United Kingdom is scheduled to leave the EU on October 31.

In commodities markets, WTI crude oil trades 0.72 per cent lower at $54.09 as global growth worries weigh on crude. Brent oil is trading 0.45% lower at $59,43 per barrel as oil world supply will be affected by the global slowdown. Gold gains and trades higher at 1,489, as the short term momentum turns bearish after the price trades below 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 neutral as it trades lower at 7,943, hitting the daily low at 7,893 and the daily high at 8,111. Bitcoin short term momentum is neutral now as the cryptocurrency trades above the 200-day moving average but below the 50-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, resistance now stands at 8,801 recent high and then at 9,000 round figure. Ethereum (ETHUSD) trades lower at 165,75 with capitalisation now to 18.32 billion, on the upside, the immediate resistance stands at 317 recent high while the support stands at 136 the low from May 6th, LTCUSD trades higher at 52.04. The crypto market cap capitalization now stands above $216.38 billion.

On the Lookout: New Zealand Trade Balance (YoY) came in at $-5.21B, beating forecasts of $-5.49B in September.  

New Zealand Trade Balance (MoM) came in at $-1242M, below forecasts ($-1112M) in September.

United States API Weekly Crude Oil Stock fell from previous 10.5M to 4.45M on October 18.

Central bank of China set the Yuan rate (USDCNH) at 7.0752 versus yesterday settlement at 7.0668.  

Trading Perspective: In forex markets, USD index trades 0.01 per cent higher at 97.53, the Aussie dollar trades 0.12 per cent lower at 0.6847, while NZDUSD trades 0.06% lower at 0.6401.

GBPUSD trades 0.02% lower at 1.2868 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 1.3010 recent high while more offers will emerge at 1.3050 round figure.

In Sterling futures markets open interest decreased by 3,800 contracts, volume increased by around 40.000 contracts.

EURUSD trades 0.02% higher at 1.1126 as the pair momentum is bullish. Immediate resistance for the pair stands at 1.1156 yesterday’s high. On the downside, immediate support stands at 1.1115 today’s low and then at 1.1003 the previous week low.

In euro futures markets open interest increased by 3,300 contracts, the volume increased by around 19.600 futures contracts.

Gold gains
USDJPY Daily Chart

USDJPY is trading 0.08% lower at 108.39 having hit the daily low at 108.24 and the daily high at 108.50. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 108.93 yesterday’s high, and then at 109.06 the 200-day moving average.

In Yen futures markets open interest decreased by 252 contracts, volume decreased by around 428 futures contracts.

USDCAD is trading 0.05% higher at 1.3099 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.  

Gold gains
USDCAD Daily Chart