Sino-US trade talks

Gold and Bitcoin Under Pressure, US Dollar Strong 

Asian equity indices ended mixed for one more day today as equities were supported by news that China and the USA have agreed to cancel tariffs on each other’s goods as part of the first phase of a trade deal. Meeting between U.S. 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 0.87% lower at 27,601. The Singapore FTSE Straits Times Index is 0.92% lower at 3,254, while the Shanghai Composite is 0.36% lower at 2,968. The ASX 200 in Australia ended 0.01% lower at 6,724. Nikkei 225 ended 0.26% higher at 23,391.

European indices started the day lower, DAX trading 0.33% lower at 13,245, CAC40 is 0.34 per cent lower at 5,870, while the FTSE MIB in Milan is 0.42 per cent lower at 23,408. In London, FTSE 100 is trading 0.33% lower at 7,381. 

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XAUUSD Daily Chart

In commodities markets, WTI crude oil trades 1.15 per cent lower at $56.48 as global growth worries weigh on crude. Brent oil is trading 0.52% lower at $61.77 per barrel as oil world supply will be affected by the global slowdown. Gold trades lower at 1,470, as the short term momentum turns bearish 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 neutral, the cryptocurrency trades lower today at 9,027, hitting the daily low at 8,995 and the daily high at 9,243. Bitcoin short term momentum is neutral 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 the 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 lower at 182,08 with capitalisation now to 20.06 billion, on the upside, the immediate resistance stands at 200 recent high while the support stands at 136 the low from May 6th. LTCUSD trades flat at 60.10. The crypto market cap capitalization now stands at $245.76 billion.

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BTCUSD Daily Chart

On the Lookout: Japan Leading Economic Index came in at 92.2, topping forecasts o 91.7 in September while the Coincident Index came in at 101 above forecasts of 99.5 in September. 

In Australia, the Housing finance demand surged 3.2% in September. 

The central bank of China set the Yuan rate (USDCNH) at 6.9945 versus yesterday’s settlement at 7.0008.  

Trading Perspective: In fx markets, USD index trades 0.03 per cent higher at 98.15, the AUDUSD trades 0.28 per cent lower at 0.6878, while NZDUSD trades 0.10% lower at 0.6359.

GBPUSD trades 0.06% higher at 1.2820 as we are getting closer to the Brexit deadline on 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 293 contracts, volume increased by around 41.800 contracts.

EURUSD trades 0.01% higher at 1.1050 as the pair’s momentum is neutral. Immediate resistance for the common currency stands at 1.1172 recent high. On the downside, the first support stands at 1.1043 today’s low and then at 1.1003.

In euro futures markets open interest increased by 25,000 contracts, the volume decreased by around 58.300 futures contracts.

USDJPY is trading 0.05% higher at 109.33, having hit the daily low at 109.14 and the daily high at 109.40. 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 increased by 5,100 contracts, and volume increased by around 74,100 futures contracts.

USDCAD is trading 0.16% higher at 1.3195. The pair will find immediate support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the upside, the first resistance now stands at the 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.