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Asian Indices Lower as Trade War Intensifies

Asian indices finished sharply lower at the start of the week as the trade war between China and USA intensifies. President Trump 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 3.08 percent lower at 25,373, Nikkei225 in Japan is 2.35% lower at 20,224. The Shanghai Composite trading 1.11 percent lower to 2,865, while in Singapore the FTSE Straits Times index finished 1,69 percent lower to 3,057. Australian equities trading lower, the ASX 200 is 1.54% lower to 6,427.

European equities started higher today, DAX30 is 0.47 percent higher to 11,667, CAC40 is 0.67 percent higher at 5,362 while the FTSE MIB in Milan is 1.01 percent higher at 20,681.

In commodities markets, crude oil trades 1.14 percent lower at $53.55 as traders turn cautious on recent trade war escalation and global growth concerns. Brent oil is trading 0.94% lower at $58,25 per barrel despite major oil producers have agreed to cut output. Gold jumps higher at 1,543 mark 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 higher at 10,327, hitting the daily low at 9,883 and the daily high at 10,625. Bitcoin regains the bullish momentum as it trades above 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 flat at 188, with capitalization now to 20.4 billion, on the upside the immediate resistance stands at 317 high while the support stands at 172 recent low, Litecoin (LTCUSD) also trades flat at 73.90. The crypto market cap now stands above $268.9 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.

Trading Perspective: In forex markets, USD index trades 0.72 percent higher at 97.96, the Aussie dollar trades 0.25 percent higher at 0.6765, while Kiwi trades 0.21% lower to 0.6380.

GBPUSD trades 0.38% lower at 1.2235. 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 1.2389 the 50-day moving average while more offers will emerge at 1.2626 the 100-day moving average.

In Pound futures markets open interest decreased by 3,200 futures contracts, while volume decreased by 29.000 contracts.

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EURUSD Daily Chart

EURUSD trades 0.19% lower at 1.1116, 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 1.1109 today’s low and then at 1.1026 the YTD low. 

In Euro futures markets open interest increased by 83 futures contracts, volume increased by 15.700 contracts.

USDJPY is trading 0,54% higher at 105.93 having hit the daily low at 104.44 and the daily high at 105.98. USDJPY pair will find support at 104.44 today’s low. On the upside, immediate resistance for the pair now stands at 107.45 the 50-day moving average and then at 108.79 the 100-day moving average. 

trade war
USDJPY Daily Chart

USDCAD is trading 0.15 higher at 1.3302, 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.