Asian Equities Mixed, Gold at Two-Week Lows

Asian equities finished mostly higher today on renewed optimism after Liu He, China’s chief trade negotiator, held discussions with his U.S. counterparts on resolving important problems. US House of Representatives last week voted two legislations backing protesters in Hong Kong a move that complicates the negotiations.

The Hang Seng index is 0.09% lower at 26,970. Nikkei 225 ended 0.35% higher at 23,373. The Singapore FTSE Straits Times Index ended 0.20% lower at 3,213 while the Shanghai Composite is 0.17% higher at 2,911. The ASX 200 in Australia added 0.83% at 6,787. 

European indices started the day mixed, DAX trading 0.23% lower at 13,215, CAC40 is 0.075 per cent lower at 5,920 while the FTSE MIB in Milan is 0.184 per cent lower at 23,4316. In London, FTSE 100 is trading 0.095% higher at 7,402. 

two-week lows
XAUUSD Daily Chart

In commodities, crude oil trades 0.14 per cent lower at $57.93 as OPEC may cut crude oil output until June 2020. Brent oil is trading 0.10% lower at $62.56 per barrel as crude oil world demand will be affected by the global growth slowdown. Gold trades lower two-week lows at 1,456, as the short term momentum is bearish now after the gold price trades below the 50 and 100-day moving average. On the upside, resistance stands at 1,555.13 YTD high while support is at 1,448 the recent low.       

In cryptocurrencies, Bitcoin (BTCUSD) rebounds today from six-month lows at 7,320, hitting the daily low at 7,068 and the daily high at 7,330. BTCUSD momentum is bearish now as the cryptocurrency trades below the 50 and 200-day moving averages. First support for bitcoin stands now at $6,510 recent low, while the next support stands at 6,000 round figure.

On the upside, resistance stands at 9,925 recent high and then at 10,000 round figure. Ethereum – ETHUSD trades higher at 148.28 with capitalisation now to 16.21 billion, immediate resistance for Ethereum stands at 200 recent high while the support stands at 130 daily low, Litecoin trades higher at 46.55. The crypto market capitalization stands at $199.06 billion.

In the Lookout: Singapore Industrial Production (YoY) came in at 4%, above forecasts of -2.4% in October. Singapore Industrial Production (MoM) came in at 3.4%, above forecasts 0.1% in October. New Zealand Retail Sales (QoQ) came in at 1.6%, above expectations of 1.2% in 3Q, Retail Sales ex Autos came in at 1.8%, above forecasts of 1.5% in 3Q.

Japan Corporate Service Price Index (YoY) came in at 2.1%, topping forecasts of 0.5% in October. 

Fitch released its APAC outlook for 2020 and held the sovereign outlook stable for the next 12-18 months.

The central bank of China (PBOC) set the Yuan rate (USDCNH) at 7.0344 versus yesterday’s settlement at 7.0397.


Trading Perspective: In fx markets, USD index trades 0.01 per cent higher at 98.29, the AUDUSD trades 0.07 per cent higher at 0.6783, while NZDUSD trades 0.08% higher at 0.6423. USDCHF is 0.03% higher at 0.9966.

GBPUSD trades 0.02% lower at 1.2896 as we are getting closer to the Brexit deadline on January 31st, 2020. Support for the pair now stands at 1.2578 recent low which if broken, might accelerate the slide further towards 1.20. On the upside, immediate resistance will be met at 1.3010 recent high while more offers will emerge at 1.3050 round figure.

In Pound futures contracts markets, open interest increased by 3,600 contracts, while the volume decreased by around 20.500 contracts.

EURUSD trades 0.01% higher at 1.1014 as the pair’s momentum has turned neutral for the short term. The first resistance for the euro stands at 1.1172 recent high. On the downside, the first support stands at 1.1006 today’s low and then at 1.1003.

In euro futures markets, open interest increased by 3,600 contracts, the volume decreased by around 30.600 futures contracts.

USDJPY is trading 0.04% higher at 108.95 having hit the daily low at 108.87 and the daily high at 109.20. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, resistance for the USDJPY now stands at 109.06 recent high.

In Yen futures markets, open interest increased by 7,500 contracts, volume decreased by around 22,800 futures contracts.

two week lows
USDJPY Daily Chart

USDCAD is trading 0.07% higher at 1.3308 the pair will find support at 1.3017 the yearly low while extra support stands at 1.30 round figure. On the upside, resistance will be met at the 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.