sino-us trade talks

Asian Stocks Higher, Gold Retreat on Trade Talks Optimism

Asian stock indices finished higher as trade talks optimism returns after President Trump said that trade talks are progressing and China and the USA are close in signing a phase one agreement to end a 17-month trade war.

The Nikkei 225 index ended 0.23% higher at 23,354. The Hang Seng index is 0.80% higher at 26,426. The Singapore FTSE Straits Times Index ended 0.25% higher at 3,181, while the Shanghai Composite is 0.17% higher at 2,904. The ASX 200 finished 0.30% higher at 6,702.  

European indices started higher, DAX trading 0.29% higher at 13,092, the CAC40 is 0.53 per cent higher at 5,832, while the FTSE MIB in Milan is 0.31 per cent higher at 23,037. In London, FTSE 100 is 0.82% higher at 7,195. 

trade talks optimism
XAUUSD Daily Chart

In commodities markets, crude oil trades 0.09 per cent lower at $58.38 close to two-month highs after OPEC agreed to cut crude oil output by 500,000 barrels per day until June. Brent oil is trading 0.17% lower at $63.28 per barrel as oil world demand will be affected by the global growth slowdown.

Gold price trades lower at 1,472, as the short term turns neutral after the gold price trades above the 20-day moving average but below the 50 and 100-day moving averages. On the upside, resistance stands at 1,555.13 YTD high while support is at 1,448 the recent low.       

In cryptocurrencies, Bitcoin trades higher at 7,357, hitting the daily low at 7,306 and the daily high at 7,440. Bitcoin momentum is still bearish as the cryptocurrency trades below the 50 and 200-day MA. Immediate support for bitcoin stands now at $6,510 recent low, while the next support holds at 6,000 round figure.

On the upside, resistance stands at 9,925 high and then at 10,000 round figure. ETHUSD trades higher at 146.32 with capitalisation now to 16.20 billion, immediate resistance for Ethereum stands at 200 recent high while the support stands at 139.71 daily low, Litecoin also trades lower at 43.94. The crypto market capitalization stands at $200.98 billion.

In the Lookout: Employment data and US Michigan Consumer Sentiment Index from the US will be the main events today. 

The Japan top came in at 91.8 below forecasts of 92 in October. Japan Coincident Index came in at 94.8 below expectations of 101.5 in October. Japan Overall Household Spending (YoY) came in at -5.1%, below forecasts of -3% in October. 

The central bank of China set the Yuan reference rate (USDCNH) at 7.0383 versus yesterday’s settlement at 7.0521.


Trading Perspective: In forex markets, the USD index trades 0.01 per cent higher at 97.39, the AUDUSD trades 0.14 per cent higher at 0.6842, while NZDUSD trades 0.26% lower at 0.6559. USDCHF is 0.12% higher at 0.9879.

GBPUSD trades 0.04% higher at 1.3163 as we are getting closer to the general election and the Brexit deadline on January 31st, 2020. The first support for the pair now stands at 1.2578 recent low which if broken, might accelerate the slide further towards 1.20. On the other hand, immediate resistance will be met at 1.3010 recent high while more offers will emerge at 1.3050 round figure.

In Pound futures contracts markets, open interest increased by 7,100 contracts, while the volume increased by around 66.000 contracts.

EURUSD trades 0.08% lower at 1.1095 as the pair’s momentum has turned bullish for the short term. The first resistance for the EURUSD stands at 1.1172 recent high. On the downside, immediate support is at 1.10946 today’s low and then at 1.1003.

In euro futures markets, open interest decreased by 13,200 contracts, the volume decreased by around 79.300 futures contracts.

USDJPY is trading 0.14% lower at 108.61 having hit the daily low at 108.57 and the daily high at 108.77. USDJPY pair will meet support at 104.44 the low from August 23rd. On the upside, resistance for the USDJPY now stands at 109.07 recent high.

In Yen futures markets, the open interest increased by 1,400 contracts, volume decreased by around 59,800 futures contracts.

USDCAD is trading 0.01% higher at 1.3174, the pair will find support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the other hand, resistance will be met at the 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.  

trade talks optimism
USDCAD Daily Chart