USDNZD Consolidates at 3-Month High, Equities Looking for Direction

Asian stocks finished lower today as investors cut their expectations of an aggressive US FED rate cut by the end of the month. The Nikkei225 ended 0.24 percent lower at 21,414, the Hang Seng finished 0.68 percent lower at 28,560. The Shanghai Composite ended 0.69 percent lower to 2,904, while in Singapore the FTSE Straits Times index finished 0.59 percent higher to 3,358. Australian equities as of writing are trading 0.11 percent higher to 6707.

European equities started the week slightly higher, DAX30 is adding 0.09 percent to 12,71, CAC40 is 0.01 percent higher at 5,552 while the FTSE MIB in Milan is trading 0.06 percent higher at 21,655. The London Stock Exchange is 0,18 percent higher to 7,521 amid non-deal Brexit worries.

In commodities markets, crude oil trades 0.70 percent higher at $56.06 as traders turn cautious on recent tensions in the Middle East. Brent oil finished on Friday 0.87% higher at $62,47 per barrel despite major oil producers have agreed to cut output. Gold started the week higher at 1,426 keeping the bullish momentum as the price holds above all the major daily moving averages. On the upside, strong resistance will be met at 1,452.90, the daily high.      

In cryptocurrencies, Bitcoin (BTCUSD) consolidates around 10,600, hitting the daily low at 10,463 and the daily high at 10,620. Immediate support for BTC stands now at $9,205 Friday’s 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) adding almost 10 dollars and trades at 225 with capitalization now to 24.1 billion. On the upside, the immediate resistance stands at 317 Friday’s high while the support stands at 200 the 100-day moving average, Litecoin (LTCUSD) also trades higher at 98.75. The crypto market cap now stands above $290.4 billion.

On the Lookout: National elections in Japan yesterday gave the victory to Shinzo Abe’s coalition as expected, its sixth straight victory, with its party winning over half the 124 seats, but failed to gain the supermajority that will give him the power to change the country’s constitution.

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NZDUSD Daily Chart

Business spending in Australia eased for the fourth straight month in June, according to Commonwealth Bank’s Business Sales Indicator. Annual trend sales growth also fell from 4.6% to 4.1%, the slowest growth pace in 19 years.

Trading Perspective: In forex markets, USD trades 0.09 percent higher at 9717, the Aussie dollar trades flat at 0.7037, while Kiwi trades at three-month high at 0.6773.

GBPUSD trading 0.09% lower today after at 1.2484 area.  Major support now stands at 1.2381 Thursday’s low which if broken might accelerate the slide further towards 1.23 round figure. On the upside immediate resistance now stands at 1.2662 the 50-day moving average while more offers will emerge at 1.2888 the 200-day moving average.  

Sterling futures markets open interest decreased by 4,700 contracts while volume decreased by 40,300 futures contracts.

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GBPUSD Hourly (H1) Chart

EURUSD trades almost unchanged around 1.1217 facing the strong resistance at 1.1244 the 50-day moving average, which if the pair manages to close above will open the way to 1.1283 the high from the previous week.  On the downside, immediate support stands at 1.1200 round figure. 

Euro futures markets open interest decreased by 3,500 contracts while volume decreased by 24,000 futures contracts.

USDJPY is trading 0.13 percent higher at 107.82 having hit the daily low at 107.69 and the daily high at 108.06. USDJPY pair will find support around 107.50 round figure and then at 107.00. On the upside, immediate resistance for the pair now stands at 108.98 the recent high and then at 110.04 the 100-day moving average. 

USDCAD holds the gains from the recent rebound from the lows around 1.30 to 1.3042 amid USD strength, and the retreat in crude oil prices, Canada’s main export item seems to have added further weakness in the Canadian Dollar (CAD). 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 1.32 zone before an attempt to 1.3450 recent high from 31st May.