Asian Indices Rebound, AUDUSD Under Pressure

Asian indices finished higher today as trade tensions between the China and USA ease. President Trump on Friday announced the increase of tariffs on $250 billion of Chinese goods to 30% from 25% starting Oct. 1, and above that, he will hike tariffs on another $300 billion in Chinese imports to 15% from 10%.

The Hang Seng trading 0.10 percent higher at 25,707, Nikkei225 in Japan is 1.20% higher at 20,504. The Shanghai Composite trading 1.68 percent higher to 2,911, while in Singapore the FTSE Straits Times index finished 0,21 percent higher to 3,071. Australian equities trading higher, the ASX 200 is 0.38% higher to 6,464.

European equities started lower today, DAX30 is 0.27 percent lower to 11,667, CAC40 is 0.34 percent lower at 5,333 while the FTSE MIB in Milan is 0.41 percent higher at 20,681. In London FTSE 100 is trading 0.36% lower at 7,068.  

In commodities markets, crude oil trades 0.62 percent higher at $53.97 as traders turn cautious on recent trade war escalation and global growth concerns. Brent oil is trading 0.53% higher at $58,43 per barrel despite major oil producers have agreed to cut output. Gold consolidates around recent high at 1,529 keeping the bullish momentum as the price holds above all the major daily moving averages. On the upside, strong resistance will be met at 1,555.13 recent high.      

In cryptocurrencies, Bitcoin (BTCUSD) trades flat at 10,165, hitting the daily low at 10,059 and the daily high at 10,384. Bitcoin cancels the bullish momentum as it trades below the 50-day moving average. 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 185, with capitalization now to 20.1 billion, on the upside the immediate resistance stands at 317 high while the support stands at 172 recent low, Litecoin (LTCUSD) also trades lower at 72.90. The crypto market cap now stands above $264.9 billion.

On the Lookout: Japan Leading Economic Index came in at 100.4 beating forecasts of 93.3 in June. Japan June final leading indicator index came in at 93.3 as per expectations. Singapore Industrial Production (year over year) came in at -0.4%, topping forecasts of -4.9% in July.

AUDUSD Daily Chart

Trading Perspective: In forex markets, USD index trades 0.06 percent lower at 97.98, the Aussie dollar trades 0.25 percent lower at 0.6757, while Kiwi trades 0.33% lower to 0.6367.

GBPUSD trades 0.01% higher at 1.2218. Major support now stands at 1.2017 the daily which if broken might accelerate the slide further towards 1.20. On the upside, immediate resistance now stands at 1.2377 the 50-day moving average while more offers will emerge at 1.2610 the 100-day moving average.

EURUSD trades 0.01% higher at 1.1101, after mixed signals from the US-China trade war developments. Immediate resistance for the pair stands at 1.1206 the 50-day moving average and then at 1.1282 the 200-day moving average. On the downside, immediate support stands at 1.1097 today’s low and then at 1.1026 the YTD low. 

USDJPY is trading 0,38% lower at 105.69 having hit the daily low at 105.64 and the daily high at 106.14. USDJPY pair will find support at 105.66 today’s low. On the upside, immediate resistance for the pair now stands at 107.41 the 50-day moving average and then at 108.74 the 100-day moving average. 

USDJPY Daily Chart

USDCAD is trading 0.12 lower at 1.3238, 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 1.3318 the daily high before an attempt to 1.3450 high from 31st May.