AUDUSD Breaks Above 0.68, Global Equities Higher after US and China Decide to Restart Trade Talks

Nikolas Papas

Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).

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AUDUSD Breaks Above 0.68, Global Equities Higher

September 5, 2019

Asian indices finished higher today after China and USA confirmed that they would restart the trade talks. The Hang Seng trading0.30 per cent higher at 26,601, Nikkei225 in Japan ended 2.35% higher at 21,132. The Shanghai Composite trading 1.56 per cent higher to 3,003, while in Singapore the FTSE Straits Times index finished 0,56 per cent higher at 3,148. The ASX 200 in Australia trading 0.96% higher to 6,615.

European equities started higher today, DAX30 is 0.80 per cent higher to 12,121, CAC40 is 0.85 per cent higher at 5,579 while the FTSE MIB in Milan is 0.50 per cent higher at 21,850. In London FTSE 100 is trading 0.26% lower at 7,292. UK Parliament rejected Prime Minister Boris Johnson’s call for an October election. A delay to Brexit together with a general election potentially later this year is the most possible scenario for now but has also reduced the chances of a no-deal Brexit next month. UK is scheduled to leave the EU on October 31.

In commodities markets, crude oil trades 0.11 percent lower at $56.20 as traders turn cautious on recent trade war escalation and global growth concerns. Brent oil is trading 0.03% higher at $60,68 per barrel despite the fact that major oil producers have agreed to cut output. Gold trades higher at 1,544 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) trading higher at 10,633, hitting the daily low at 10,494 and the daily high at 10,687. Bitcoin short term momentum is bullish now as it trades above the 100-day moving average. Immediate support for BTC stands now at $9,258 recent low, 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) retreats from recent highs at 174,92 with capitalization now to 18.9 billion, on the upside, the immediate resistance stands at 317 high while the support stands at 136 the low from May 6th, Litecoin (LTCUSD) also trades lower at 66.84. The crypto market cap now stands above $268.6 billion.

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AUDUSD Daily Chart

On the Lookout: Australian trade balance came in at AUD 7.268bn topping expectations of  AUD7bn surplus. 

The central bank of China set the Yuan rate (USDCNY) at 7.0852 at the lowest level in 11 years, versus yesterday fix at 7.0878.

Trading Perspective: In forex markets, USD index trades 0.07 per cent lower at 98.34, the Aussie dollar trades 0.26 per cent higher at 0.6814, while Kiwi trades 0.39% higher at 0.6384.

GBPUSD trades 0.09% lower at 1.2244. Major support now stands at 1.2078 recent low which if broken might accelerate the slide further towards 1.20. On the upside, immediate resistance now stands at 1.2305 the 50-day moving average while more offers will emerge at 1.2556 the 100-day moving average.

In Sterling futures markets the open interest increased by 364 futures contracts while volume went down by 88.600 contracts.

EURUSD trades 0.08% lower at 1.1027, after positive signals from the US-China trade war developments. Immediate resistance for the pair stands at 1.1158 the 50-day moving average and then at 1.1268 the 200-day moving average. On the downside, immediate support stands at 1.1024 today’s low and then at 1.0925 YTD low.

In Euro futures markets the open interest increased by 1.200 futures contracts while volume went down by 58.000 contracts.

USDJPY is trading 0.20% higher at 106.57 having hit the daily low at 106.31 and the daily high at 106.74. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 107.20 the 50-day moving average and then at 108.40 the 100-day moving average. 

In Yen futures markets the open interest increased by 5.800 contracts while volume went down by 46.400 contracts.

USDCAD is trading 0.05lower at 1.3215, 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 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.

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USDCAD Daily Chart

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