Asian Stocks Mostly Higher, Gold Retreats from Recent Highs

Asian stocks finished mostly higher today amid the recent escalation in US-China trade tensions, while USDCNH fixing rate was at 7.0211. The Hang Seng trading finished 0.09 percent higher at 25,959. The Shanghai Composite ended 1.22 percent higher to 2,808, while in Singapore the FTSE Straits Times index finished 0,49 percent lower to 3,168. Australian equities trading flat, the ASX 200 is 0.01% lower to 6,584.

European equities started higher the day, DAX30 is 1.07 percent higher to 11,818, CAC40 is 1.00 percent higher at 5,379 while the FTSE MIB in Milan is trading 0.98 percent higher at 20,512. The London Stock Exchange is 0,57% percent higher to 7,297.

gold retreats
XAUUSD Hourly (H1) Chart

In commodities markets, crude oil trades 0.28 percent lower at $54.35 as traders turn cautious on recent trade war escalation and global growth concerns. Brent oil is trading 0.17% lower at $58,43 per barrel despite major oil producers have agreed to cut output. Gold retreats and trades lower at 1,491, keeping the bullish momentum as the price holds above all the major daily moving averages. On the upside, strong resistance will be met at 1,510.35 high.      

In cryptocurrencies, Bitcoin (BTCUSD) trades slightly lower today at 11,332, hitting the daily low at 11,287 and the daily high at 11,576. Bitcoin trades above the 50-day moving average and holds a positive momentum for the short term. Immediate support for BTC stands now at $9,439 the low from July 30, 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) trades higher at 210, with capitalization now to 22.8 billion, and on the upside, the immediate resistance stands at 317 Friday’s high while the support stands at 200 round figure, Litecoin (LTCUSD) also trades higher at 86.05. The crypto market cap now stands above $296.4 billion.

On the Lookout: New Zealand Treasury confirmed that the Reserve Bank of New Zealand could cut OCR to minus 0.35% in a case of crisis. 

Fitch Credit rating agency on Friday affirmed Italy’s credit rating at ‘BBB’ with ‘Negative’ Outlook. 

Matteo Salvini’s is looking for fresh elections but his coalition partner and opposition parties may team up to prevent an early vote.

Trading Perspective: In forex markets, USD trades 0.60 percent higher at 97.61, the Aussie dollar trades 0.09 percent lower at 0.6780, while Kiwi traded lower to 0.6462.

gold retreats
AUDUSD Daily Chart


GBPUSD trades 0.30% higher at 1.2058. Major support now stands at 1.2014 the today’s low which if broken might accelerate the slide further towards 1.20. On the upside, immediate resistance now stands at 1.2521 the 50-day moving average while more offers will emerge at 1.2756 the 100-day moving average.

In Pound futures markets open interest decreased by 4.500 futures contracts, volume increased by 8.300 contracts.

EURUSD trading lower today at 1.1188, capped by the strong resistance at 1.1249 recent high, which if the pair manages to close above will open the way to 1.1297, the 200-day moving average. On the downside, immediate support stands at 1.1177 the previous week low. 

In Euro futures markets open interest decreased by 4.200 futures contracts, volume dropped by 61.700 contracts.

USDJPY is trading 0,17% lower at 105.51 having hit the daily low at 105.30 and the daily high at 105.68. USDJPY pair will find support around 105.30 daily low and then at 105. On the upside, immediate resistance for the pair now stands at 108.08 the 50-day moving average and then at 109.46 the 100-day moving average. 

USDCAD is trading 0.08 higher at 1.3224 consolidating around the recent highs; 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 1.3314 zone before an attempt to 1.3450 high from 31st May.