Gold Jumps Higher

Gold Retreats, EURUSD Below 1.10

Asian indices finished mixed today as trade tensions between the China and USA ease. The Hang Seng ended 0.38 percent lower at 25,626, Nikkei225 in Japan ended 0.41% lower at 20,620. The Shanghai Composite trading 1.31 percent higher to 2,924, while in Singapore the FTSE Straits Times index finished 0,76 percent higher at 3,082. The ASX 200 in Australia finished 0.40% lower to 6,579.

European equities started higher today, DAX30 is 0.42 percent higher to 11,988, CAC40 is 0.36 percent higher at 5,500 while the FTSE MIB in Milan is 1.08 percent higher at 21,5552. In London FTSE 100 is trading 1.41% higher at 7,309.  

XAUUSD Daily Chart

In commodities markets, crude oil trades 0.02 percent higher at $55.11 as traders turn cautious on recent trade war escalation and global growth concerns. Brent oil is trading 0.19% lower at $59,14 per barrel despite the fact that major oil producers have agreed to cut output. Gold retreats and trades lower at 1,521, 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.      

In cryptocurrencies, Bitcoin (BTCUSD) started the week higher at 9,798, hitting the daily low at 9,615 and the daily high at 9,828. Bitcoin short term momentum is bearish now as it trades below the 50-day moving average. Immediate support for BTC stands now at $9,258 yesterday’s low, while next support stands at 9,000. On the upside, strong resistance now stands at 13,138 recent high and then at 13,500 round figure. Ethereum (ETHUSD) rebounds from 4-month lows at 170,65 with capitalization now to 18.4 billion, and on the upside, the immediate resistance stands at 317 high while the support stands at 136 the low from May 6th, Litecoin (LTCUSD) also trades higher at 65.31. The crypto market cap now stands above $252.1 billion.

On the Lookout: Japan Nikkei Manufacturing PMI declined to 49.3 in August from previous 49.5. Australia ANZ Job Advertisements came in at -2.8% in August from the previous 0.8%. Australia Company Gross Operating Profits (QoQ) came in at 4.5%, topping forecasts of 2% in 2Q. The AiG Performance of Mfg Index up to 53.1 in August from previous 51.3. New Zealand Terms of Trade Index registered at 1.6% above expectations (1%) in 2Q.

The central bank of China set the Yuan rate (USDCNY) at 7.0883 at the lowest level in 11 years, versus yesterday fix at 7.0879.

Trading Perspective: In forex markets, USD index trades 0.22 percent higher at 99.03, the Aussie dollar trades 0.25 percent lower at 0.6716, while Kiwi trades 0.01% lower to 0.6307.

GBPUSD trades 0.66% lower at 1.2079. Major support now stands at 1.2063 the low from August 20th which if broken might accelerate the slide further towards 1.20. On the upside, immediate resistance now stands at 1.2335 the 50-day moving average while more offers will emerge at 1.2574 the 100-day moving average.

In Sterling futures contracts the open interest, decreased by 400 contracts, the volume, advanced by around 9.700 futures contracts.

EURUSD trades 0.12% lower at 1.0973, after mixed signals from the US-China trade war developments. Immediate resistance for the pair stands at 1.1180 the 50-day moving average and then at 1.1272 the 200-day moving average. On the downside, immediate support stands at 1.0957 today’s low and then at 1.09 round figure. 

In euro futures traders added 6,800 contracts to their open interest positions, volume rose by 28,400 contracts.


USDJPY is trading 0.07% higher at 106.31 having hit the daily low at 105.91 and the daily high at 106.39. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 107.25 the 50-day moving average and then at 108.52 the 100-day moving average. 

In Yen futures contracts open interest decreased by 714 contracts, the volume, decreased by around 17.900 futures contracts.

USDCAD is trading 0.19 higher at 1.3333, and 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 1.3337 the daily high before an attempt to 1.3450 high from 31st May.