Heading South

USDCAD at 3-Week Lows, Gold Shines 

Asian stocks finished lower today as U.S President Trump announced that the US will impose a 10.0% tariff on the remaining $300.0bn-worth of Chinese products. The Nikkei225 ended 2.11 percent lower at 21,087, the Hang Seng finished 2.35 percent lower at 26,918. The Shanghai Composite ended 1.41 percent lower to 2,867, while in Singapore, the FTSE Straits Times index finished 0,93 percent lower to 3,261. Australian equities also ended lower, the ASX 200 finished 0.30% lower to 6,768.

European equities are under heavy selling pressure today, DAX30 is giving up 2.42 percent to 11,954, CAC40 is 2.67 percent lower at 5,408 while the FTSE MIB in Milan is trading 1.74 percent lower at 21,182. The London Stock Exchange is 1,74% percent lower to 7,452

XAUUSD Daily Chart

In commodities markets, crude oil trades 2.22 percent higher at $55.15 as traders turn cautious on recent tensions in the Middle East. Brent oil is trading 2.53% higher at $62,03 per barrel despite major oil producers have agreed to cut output. Gold is trading higher at 1,436 keeping the bullish momentum as the price holds above all the major daily moving averages. On the upside, strong resistance will be met at 1,452.90 high.      

In cryptocurrencies, Bitcoin (BTCUSD) continues higher for the third day and trades at 10,477 hitting the daily low at 10,308 and the daily high at 10,574. Bitcoin trades above the 50-day moving average, and now the momentum is positive for the short term, the previous two times it managed to rebound from that point. 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) adds 7 dollars at 218 with capitalization now to 23.6 billion. On the upside, the immediate resistance stands at 317 Friday’s high while the support stands at 200 round figure, Litecoin (LTCUSD) trades higher at 97.05. The crypto market cap now stands above $284.5 billion.

On the Lookout: President Trump, decided yesterday to add another 10% tariffs on the remaining USD300bn worth of US imports from China, starting September 1st.

Australian Retail sales increased 0.4% in June, while Australia Producer Price Index (year over year) came in at 2% above forecasts of 1.9% in 2Q. New Zealand’s ANZ-Roy Morgan Consumer Confidence down 6 points for July to 116, below the historical average. Japan’s government approved a plan to remove South Korea from the trusted export white list.

Trading Perspective: In forex markets, USD trades 0.12 percent lower at 98.12, the Aussie dollar trades 0.11 percent lower at 0.6793, while Kiwi trades lower at 0.6528.

NZDUSD Daily Chart

GBPUSD is trading 0.16% lower at 1.2111. Major support now stands at 1.2089 today’s low which if broken might accelerate the slide further towards 1.2050. On the upside, immediate resistance now stands at 1.2140 the 50-hour moving average while more offers will emerge at 1.2166 the 100-hour moving average.

In Pound futures markets open interest increased by 1,300 contracts while volume decreased by 16,300 futures contracts.

EURUSD rebounds from 2-year lows at 1.1098, facing now the strong resistance at 1.1121 the high from yesterday, which if the pair manages to close above will open the way to 1.1161.  On the downside, immediate support stands at 1.102 the low from yesterday. 

Euro futures markets open interest increased by 2,500 contracts while volume increased by 44,600 futures contracts.

USDJPY is trading 0.46% lower at 106.83 having hit the daily low at 106.78 and the daily high at 107.56. USDJPY pair will find support around 108.50 round figure and then at 108. On the upside, immediate resistance for the pair now stands at 109.31 the recent high and then at 109.63 the 100-day moving average. 

In Yen futures markets open interest increased by 4,400 contracts while volume increased by 110,000 futures contracts.

USDCAD is trading 0.07 higher at 1.3220 and continues the rebound from the lows around 1.30 amid USD strength, and the retreat in crude oil prices, Canada’s main export item seems to have added further weakness in the Canadian Dollar (CAD). 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 1.3222 zone before an attempt to 1.3450 high from 31st May.