Gold Higher on Renewed Trade Worries, AUDUSD at Three Month Highs

Nikolas Papas

Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).

gold

Gold Higher on Renewed Trade Worries, AUDUSD at Three Month Highs

November 1, 2019

Asian equity indices ended mixed today as investors digest the 25 basis point to 1.50%-1.75% from Fed as widely expected by the markets, and signalled that will not proceed with further cuts to see whether these easing steps are enough to sustain the economic growth. U.S. GDP for Q3 expanded at a 1.9%, slowing from 2% in the Q2 but came in above market forecasts for growth of 1.6%.

Jerome Powell pointed out several reasons why he feels the US economy is doing well, such as robust consumer spending, strengthening home sales, and healthy asset prices.

Nikkei 225 ended 0.33% lower at 22,850. The Hang Seng index is 0.63% higher at 27,071. The Shanghai Composite is 1.02% higher at 2,958. The ASX 200 in Australia is 0.17% lower at 6,652.

European indices started the day higher. DAX trading 0.35% higher at 12,910, CAC40 is 0.25 per cent higher at 5,744, while the FTSE MIB in Milan is 0.22 per cent higher at 22,743. In London, FTSE 100 is trading 0.26% higher at 7,267. 

trade worries
XAUUSD Daily Chart

In commodities markets, WTI crude oil trades 0.30 per cent higher at $54.34 as global growth worries weigh on crude. Brent oil is trading 0.07% higher at $59.66 per barrel as oil world supply will be affected by the global slowdown. Gold trades higher on renewed trade worries at 1,509, as the short term momentum turns bullish 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 neutral, the cryptocurrency trades lower today at 9,122, hitting the daily low at 9,037 and the daily high at 9,163. Bitcoin short term momentum is neutral now as the cryptocurrency trades above the 200-day moving average and below 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 lower at 180,75 with capitalisation now to 19.78 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 lower at 57.74. The crypto market cap capitalization now stands at $244.63 billion.

On the Lookout: China Caixin Manufacturing PMI came in at 51.7, topping expectations of 51 in October. Japan Jibun Bank Manufacturing PMI came in at 48.4 below expectations of 48.5 in October. Japan Unemployment Rate came in at 2.4% beating expectations of 2.3% in September. 

Australia Producer Price Index (QoQ) came in at 0.4% topping forecasts of 0.3% in 3Q. Australia Producer Price Index (YoY) came in at 1.6% below forecasts of 1.8% in 3Q, Australia Commonwealth Bank Manufacturing PMI came in at 50 below forecasts of 50.1 in October. Australia AiG Performance of Mfg Index dropped to 51.6 in October from the previous reading of 54.7. 

Bank of Japan kept its monetary policy as expected and changed its forward guidance to more clearly signal the future chance of a rate cut.  

The central bank of China set the Yuan rate (USDCNH) at 7.0437 versus yesterday settlement at 7.0533.  

Trading Perspective: In fx markets, USD index trades 0.11 per cent lower at 97.22, the AUDUSD trades 0.18 per cent higher at 0.6905, while NZDUSD trades 0.29% higher at 0.6432.

trade worries
AUDUSD Daily Chart

GBPUSD trades 0.14% higher at 1.2959 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 2,000 contracts, volume increased by around 21.400 contracts.

EURUSD trades 0.11% higher at 1.1164 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 yesterday’s low and then at 1.1003 the previous week low.

In euro futures markets open interest increased by 11500 contracts, the volume decreased by around 2.800 futures contracts.

USDJPY is trading 0.07% lower at 107.95 having hit the daily low at 107.88 and the daily high at 108.05. 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 decreased by 3,700 contracts, volume increased by around 52,400 futures contracts.

USDCAD is trading 0.12% lower at 1.3148 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.  

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