Asian equities continued to trade higher as moves by the United States and China continue to work toward resolving a bitter trade dispute and an increase in interest rate in crisis-hit Turkey continue to support global risk appetite.
The Asian trading session was also stronger having lost ground this week on a gloomy outlook from Goldman Sachs. On the other hand, there is no way away from the simmering trade tensions between US and China, while Donald Trump stated on Thursday that China was pressured to make a trade deal with the US rather than vice versa.
In the forex market, the greenback failed to recover following Thursday’s weaker than expected inflation release, with the Turkish rate hike managed to calm some of the recent jitters over emerging market currencies whereas the prospect of reduced stimulus in the Eurozone supported the Euro.
The Australian dollar positive tone for the week failed to improve by the broadly in line Chinese economic data, which suggested that market focus is probably elsewhere. China’s official August industrial production increased by 6.1%, while the expansion for the year to date was 6.5% again in line. Retail sales did better, expanding by 9% in August, beating the 8.8% rise expected. Fixed asset investment rose by just 5.3%, however, below the 5.6% expected and July’s 5.5% gain.
As for Asian equities, Nikkei is up by 0.93% to 23,033.2,ASX 200 is up by 0.19% to 6,170.2,Shanghai index is down by 0.13% to 2,683.031 and Hang Seng is up by 0.81% to 27,232.5
As for commodities, trading was mixed with gold prices taking advantage of a decrease in dollar demand while oil benchmarks took additional hits on global demand concerns. Gold is up by 0.32% to $1,205.20 per troy ounce, U.S. WTI is down by 0.04% to $68.75 and Brent crude oil is down by 0.20% to $78.25 per barrel
The trading trend in the Euro today is expected to be determined by the Euro-zone’s trade balance data for July, scheduled to release in a few hours.
EURUSD: Intraday bias in EUR/USD remains on the upside for 1.1735 resistance and above.
GBPUSD: Intraday bias in GBP/USD remains on the upside at this point.
USDCAD: No change in USD/CAD’s outlook While pulling back from 1.3225 might extend lower, downside should be contained well above 1.2885 support to bring rally resumption
USDCHF: Focus remains on 0.9640 low in USD/CHF. Decisive break there will resume the whole fall from 1.0065.
USDJPY: USD/JPY’s break of 111.85 resistance finally confirmed resumption of rebound from 109.75.