Heading South

Nikkei ends Higher, GBP Under Pressure after Weak GDP Data

Asian stocks finished mixed today after the recent escalation in US-China trade tensions, while USDCNH finished above the 7 level. The Nikkei225 finished 0.40 percent higher at 20,684, the Hang Seng trading finished 0.47 percent lower at 25,996. The Shanghai Composite ended 0.72 percent lower to 2,774, while in Singapore, the FTSE Straits Times index finished 0,49 percent lower to 3,186. Australian equities finished higher, the ASX 200 ended 0.25% higher to 6,584.

AUDUSD Daily Chart

European equities started lower the day, DAX30 is 1.02 percent lower to 11,720, CAC40 is 0.90 percent lower at 5,338, while the FTSE MIB in Milan is trading 2.33 percent lower at 20,356. The London Stock Exchange is 0,19% percent lower to 7,272.

In commodities markets, crude oil trades 1.28 percent higher at $53.21 as traders turn cautious on recent trade war escalation and global growth concerns. Brent oil is trading 1.39% higher at $58,18 per barrel despite major oil producers have agreed to cut output. Gold makes consolidates around recent highs at 1,503 keeping the bullish momentum as the price holds above all the major daily moving averages. On the upside, strong resistance will be met at 1,508.81 high.      

In cryptocurrencies, Bitcoin (BTCUSD) trades lower today at 11,678, hitting the daily low at 11,520 and the daily high at 12,054. Bitcoin trades above the 50-day moving average and holds a positive momentum for the short term. 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) trades lower at 207 giving up almost 15 dollars, with capitalization now to 22.5 billion, on the upside the immediate resistance stands at 317 Friday’s high while the support stands at 200 round figure, Litecoin (LTCUSD) also trades lower at 84.05. The crypto market cap now stands above $300.6 billion.

On the Lookout: Fitch affirmed South Korea’s credit rating at “AA-“ with a “stable” rating outlook despite the South Korea -Japan trade dispute. China Consumer Price Index (Year over Year) came in at 2.8%, topping expectations of 2.7% for the month of July, the Producer Price Index (Year over Year) came in at -0.3% below expectations of -0.1% in July. 

Central banks in Thailand, New Zealand and India have cut official interest rates in the past 24 hours to shore up their economies given escalation US-China trade tensions.

Trading Perspective: In forex markets, USD trades 0.05 percent lower at 97.52, the Aussie dollar trades 0.07 percent higher at 0.6807, while Kiwi rebounds to 0.6487.

GBPUSD trades under pressure 0.36% lower at 1.2088. Major support now stands at 1.2078 the recent low which if broken might accelerate the slide further towards 1.2050. On the upside, immediate resistance now stands at 1.2521, the 50-day moving average, while more offers will emerge at 1.2756, the 100-day moving average.

EURUSD trading flat around 1.12 mark, capped by the strong resistance at 1.1249 recent high, which if the pair manages to close above will open the way to 1.1297 the 200-day moving average. On the downside, immediate support stands at 1.1177 the weekly low. 


USDJPY is trading 0.28% lower at 105.75 having hit the daily low at 105.71 and the daily high at 106.07. USDJPY pair will find support around 105.50 round figure and then at 105. On the upside, immediate resistance for the pair now stands at 108.08, the 50-day moving average, and then at 109.46, the 100-day moving average. 

USDCAD is trading 0.02 lower at 1.323 and consolidates around the recent highs; 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 1.3314 zone before an attempt to 1.3450 high from 31st May.