Gold Retreats, Asian Stocks Mixed

Asian indices finished mixed today as political turbulence in Washington weighs on global equities. The US and China are planning to restart negotiations in early October. Crude oil price stabilizes after the drone attack on Saudi Arabia oil facilities which is expected to cut 5% of the world’s oil supply.

The Hang Seng is trading 0.20 per cent higher at 25,990, the Shanghai Composite is trading 0.89 per cent lower to 2,929, while in Singapore, the FTSE Straits Times index finished 0.11 per cent higher at 3,129. The ASX 200 in Australia finished 0.49% lower at 6,677.

European indices started higher the day, DAX30 is 0.10 per cent higher to 12,256, CAC40 is 0.20 per cent higher at 5,595 while the FTSE MIB in Milan is 0.22 per cent higher at 21,835. In London FTSE 100 is trading 0.32% higher at 7,312. UK is scheduled to leave the EU on October 31.

XAUUSD Daily Chart

In commodities markets, crude oil trades 0.30 per cent lower at $56.32 after the drone strikes in Saudi Arabia oil facilities. Brent oil is trading 0.29% lower at $61,25 per barrel as oil world supply will be affected by the drone attacks. Gold trades lower at 1,507, 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 while support is at 1,491 the 50-day moving average.      

In cryptocurrencies, Bitcoin (BTCUSD) trades flat at 8,366, close to 3-month lows, hitting the daily low at 8,303 and the daily high at 8,634. Bitcoin short term momentum is bearish now as it trades below all major daily moving averages. Immediate support for BTC stands now at $8,204 yesterday’s low, while next support stands at 8,000. On the upside, strong resistance now stands at 8,790 yesterday’s high and then at 9,500 round figure. Ethereum (ETHUSD) trades flat at 167,83 with capitalisation now to 18.3 billion, on the upside, the immediate resistance stands at 317 high while the support stands at 136 the low from May 6th, Litecoin (LTCUSD) trades higher at 56.78. The crypto market cap capitalization now stands above $221.51 billion.

On the Lookout: The Bank of Mexico will announce it’s Interest Rate Decision at 18:00GMT

The Japan August machine tools orders y/y came in at -37% while the previous reading was -37.1%. 

The central bank of China set the Yuan rate (USDCNY) at 7.0947 versus yesterday fix at 7.0724.

Trading Perspective: In forex markets, USD index trades 0.01 per cent higher at 99.02, the Aussie dollar trades 0.06 per cent higher at 0.6754, while Kiwi trades 0.45% higher at 0.6297.

GBPUSD trades 0.11% lower at 1.2330 as we are getting closer to 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 1.2468 the 100-day moving average while more offers will emerge at 1.2733 the 200-day moving average.

In Pound futures markets open interest increased by 438 contracts, volume increased by around 3.400 futures contracts.

EURUSD trades 0.01% lower at 1.0941, trapped in the descending channel. Immediate resistance for the pair stands at 1.1087 the 50-day moving average and then at 1.1166 the 100-day moving average. On the downside, immediate support stands at 1.0939 today’s low and then at 1.0925 YTD low.

USDJPY is trading 0.12% lower at 107.63 having hit the daily low at 107.58 and the daily high at 107.76. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 107.90, the 100-day moving average and then at 109.25, the 200-day moving average. 

In Yen futures markets open interest increased by 3,600 contracts, volume decreased by around 380 futures contracts.

USDJPY Daily Chart

USDCAD is trading 0.10 lower at 1.3253 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.