Asian Equities Higher, Gold at Three Day Lows 

Asian equity indices ended higher at the first trading session of the week as trade talk optimism returns and China cut the seven days reverse repo rate to 2.50%.

On Friday, the Dow Jones breached the milestone 28,000 mark for the first time, closing the trading session with a gain of 222 points. The Hang Seng index is 0.95% higher at 26,578. The Singapore FTSE Straits Times Index is 0.20% higher at 3,245, while the Shanghai Composite is 0.55% higher at 2,907. The ASX 200 in Australia is trading 0.50% lower at 6,758. Nikkei 225 ended 0.38% higher at 23,391 close to yearly highs.

European indices started the day higher, DAX is trading 0.0% lower at 13,236, CAC40 is 0.17 per cent lower at 5,929, while the FTSE MIB in Milan is 0.08 per cent lower at 23,566. In London, FTSE 100 is trading 0.05% higher at 7,306. 

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XAUUSD Daily Chart

In commodities, WTI crude oil trades 0.07 per cent higher at $57.76 as global growth worries ease on optimism coming out of trade talks. Brent oil is trading 0.02% higher at $63.31 per barrel as oil world demand will be affected by improved global trade. Gold trades slightly lower at 1,465, as the short term momentum is bearish now after the price trades below the 50 and 100-day moving average. On the upside, resistance stands at 1,555.13 yearly high while support is at 1,448 the recent low.       

In cryptocurrencies, Bitcoin’s (BTCUSD) momentum is bearish, the cryptocurrency trades lower for one more day at 8,478, hitting the daily low at 8,401 and the daily high at 8,542. Bitcoin’s short term momentum is negative now as the cryptocurrency trades above the 200-day moving average but below the 50-day moving average. First support for BTC stands now at $7,364 recent low, while the next support stands at 7,300 round figure.

On the upside, resistance now stands at 9,925 recent high and then at the 10,000 round figure. Ethereum (ETHUSD) trades unchanged at 182,72 with capitalisation now to 20.14 billion, and on the upside, the immediate resistance stands at 200 recent high while the support stands at 136, the low from May 6th. LTCUSD trades lower at 59.63. The crypto market capitalization now stands at $234.98 billion.

On the Lookout: Moody’s: Reduced Australian growth forecast to 2.2% for 2020 

The US dollar will be affected by minutes of the Fed’s last policy meeting, which will be released on Wednesday.

The United States Baker Hughes US Oil Rig Count on Friday came in at 674 from the previous figure of 684.

In our central bank calendar, Luis de Guindos, Vice-President of the ECB giving speech at 9:00GMT, the ECB governing council member de Cos speaks at 13:00GMT, while Philip Lane a member of the Executive Board of the European Central Bank, speaks at 13:20GMT

The central bank of China set the Yuan rate (USDCNH) at 7.0037 versus yesterday’s settlement at 7.0091.  

Trading Perspective: In forex markets, USD index trades 0.06 per cent lower at 97.94, the AUDUSD trades 0.10 per cent lower at 0.6810, while NZDUSD trades 0.03% lower at 0.6398.

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AUDUSD Daily Chart

GBPUSD trades 0.22% higher at 1.2926 as we are getting closer to the Brexit deadline on January 31st. Major support now stands at 1.2578 recent low which if broken, might accelerate the slide further towards 1.20. On the upside, first resistance now stands at 1.3010 recent high while more offers will emerge at 1.3050 round figure.

In Pound futures markets, open interest increased by 1,200 contracts, volume increased by around 18.000 contracts.

EURUSD trades 0.09% higher at 1.1059 as the pair’s momentum is neutral. Immediate resistance for the common currency stands at 1.1172 recent high. On the downside, the first support stands at 1.1014 today’s low and then at 1.1003.

In euro futures markets, open interest decreased by 3,700 contracts, the volume decreased by around 16.600 futures contracts.

USDJPY is trading 0.09% higher at 108.84 having hit the daily low at 108.64 and the daily high at 108.84. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the USDJPY now stands at 109.06 recent high.

In Yen futures markets, open interest increased by 353 contracts, volume increased by around 7,500 futures contracts.

USDCAD is trading 0.01% higher at 1.3217 the pair will find support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the upside, the first resistance now stands at the 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.