Sino-US trade talks

Asian Indices Started the Week Lower amid Hong Kong Violent Protests

Asian equity indices ended lower today amid fresh violent protests in Hong Kong and mixed signals from China and US trade talks. Meeting between President Trump and Chinese President Xi Jinping to sign an interim deal could be delayed until December as discussions continue over terms.

The Hang Seng index is 2.94% lower at 26,840. The Singapore FTSE Straits Times Index is 0.98% lower at 3,231, while the Shanghai Composite is 1.58% lower at 2,917. The ASX 200 in Australia trading 0.50% higher at 6,758. Nikkei 225 ended 0.26% lower at 23,331.

European indices started the day lower, DAX trading 0.17% lower at 13,206, CAC40 is 0.02 per cent lower at 5,888, while the FTSE MIB in Milan is 0.43 per cent lower at 23,458. In London, FTSE 100 is trading 0.46% lower at 7,324. 

In commodities markets, WTI crude oil trades 1.15 per cent lower at $56.60 as global growth worries weigh on crude. Brent oil is trading 1.09% lower at $61.3 per barrel as oil world supply will be affected by the global slowdown. Gold trades higher at 1,463, as the short term momentum is bearish now after the price trades below the 50 and 100-day moving average. On the upside, strong resistance stands at 1,555.13 yearly high while support is at 1,458 the recent low.       

In cryptocurrencies, Bitcoin’s (BTCUSD) momentum is bearish, the cryptocurrency trades lower today at 8,735, hitting the daily low at 8,690 and the daily high at 9,089. Bitcoin short term momentum is negative now as the cryptocurrency trades above the 200-day moving average and below the 50-day moving average. First support for BTC stands now at $7,364 recent low, while next support stands at 7,300 round figure.

On the upside, resistance now stands at 9,925 recent high and then at 10,000 round figure. Ethereum (ETHUSD) trades higher at 184,93 with capitalisation now to 20.39 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 higher at 61.22. The crypto market capitalization now stands at $241.86 billion.

On the Lookout: The Japan Eco Watchers Survey Outlook came in at 43.7 topping expectations of 41.3 in October, Japan Eco Watchers Survey Current came in at 36.7, below forecasts of 47.1 in October. Japan Trade Balance – BOP Basis came in at ¥1.1B, below expectations of ¥705B in September. The China Consumer Price Index (MoM) came in at 0.9% above forecasts of 0.7% in October.   

The UK’s outlook cut to negative by Moody’s rating agency on policy ‘paralysis

The central bank of China set the Yuan rate (USDCNH) at 6.9933 versus yesterday settlement at 6.9945.  

Trading Perspective: In fx markets, USD index trades 0.09 per cent lower at 98.31, the AUDUSD trades 0.04 per cent higher at 0.6859, while NZDUSD trades 0.42% higher at 0.6350.

GBPUSD trades 0.21% higher at 1.2800 as we are getting closer to the Brexit deadline in 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, immediate resistance now stands at 1.3010 recent high while more offers will emerge at 1.3050 round figure.

In Sterling futures markets, open interest decreased by 1,500 contracts, volume decreased by around 35.600 contracts.

EURUSD Daily Chart

EURUSD trades 0.07% higher at 1.1025 as the pair’s momentum is neutral. Immediate resistance for the common currency stands at 1.1172 recent high. On the downside, first support stands at 1.1016 today’s low and then at 1.1003.

In euro futures markets, open interest increased by 5,300 contracts, the volume decreased by around 56.500 futures contracts.

USDJPY is trading 0.19% lower at 109.005 having hit the daily low at 108.91 and the daily high at 109.24. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 109.06 recent high.

In Yen futures markets, open interest decreased by 392 contracts, volume decreased by around 60,500 futures contracts.

hong kong protests
USDJPY Daily Chart

USDCAD is trading 0.01% higher at 1.3226 the pair will find immediate support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the upside, first resistance now stands at the 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.