AThe majority of Asian equities soared blessed by gains on Wall Street, which was fueled by popular expectations of robust US earnings. However, China’s markets trembled as market participants were getting ready for the impact of expanding tit-for-tat Chinese-US tariffs. Additionally, fears of draconian measures from Washington which may be on its way, while China reported a trade surplus with the United States of 28.97 B in June, which is the highest on record according to Reuters.
Global markets were getting hit earlier in the week following a publication by the Trump Administration of a list of Chinese goods it might want to target for its 10% tariff. However, the lack of more information and measured response from China has given some of the room to advance again.
As for Asian equities, The Nikkei 225 was up 2% as its close loomed, with stocks in Hong Kong and Seoul also higher. Shanghai and Sydney mainboards both slipped into the red, but not by very much.
On the forex site, the session was very torpid with the Aussie reacting little to news of another broad Chinese trade surplus, which is seen as the result of rhetoric from Washington, which came highly charged despite both exports and imports missed expectations. The greenback continued to advanced against the Japanese Yen, with some of the commentators attributing the rise to the buying of US stocks by Japanese pension funds which has fueled some of its strengths
Gold prices were somewhat underwhelming by the sight if a little more US dollar strength, while crude oil prices were trading mixed but could suffer a further set of falls.
Looking ahead, there is no newsworthy economic release for market participants to look out for.
EURUSD: Intraday bias in EUR/USD remains on the downside for retesting 1.1505 low.
GBPUSD: GBP/USD’s fall from 1.3365 continues today and current development should confirm completion of corrective rebound from 1.3050.
USDCAD: USD/CAD retreated after hitting 1.3215 and intraday bias is turned neutral again.
USDCHF: USD/CHF rally accelerated to as high as 1.0035 so far intraday bias remains on the upside.
USDJPY: Intraday bias in USD/JPY remains on the upside for the moment.