Financial market action subdued due to Sino-US trade jitters
Traders and investors remained cautious this week as trade tensions between the United States and China resumed, following a period of calm in financial markets. US President Trump threatened to impose even greater trade tariffs on China if they failed to sign a trade deal. US equity markets moved away from significant trading highs this week on Sino-US tensions, while safe-haven asset classes received a boost. Market sentiment was also fragile as President Trump faced possible impeachment charges over his discussion with the Ukranian President.
- The USDJPY pair is only bearish while trading below the 108.90 level, key support is found at the 108.20 and 107.90 levels.
- If the USDJPY pair trades above the 108.90 level, buyers may test towards the 109.60 and 110.00 resistance levels.
The British pound recovered higher against the US dollar this week, as the British PM Boris Johnson’s Conservative party extended its lead in the latest UK election opinion polls. News that the Brexit party would stand down in Conservative party strongholds to stop the possibility of a hung-Parliament helped to boost the GBPUSD pair towards the 1.2900 level. The UK economy also posted mixed economic data this week, with the UK narrowingly avoiding falling into a technical recession as the UK economy expanded by 0.3 percent during the third quarter of this year.
The GBPUSD pair is only bearish while trading below the 1.2900 level, key support is found at the 1.2770 and 1.2710 levels.
If the GBPUSD pair trades above the 1.2900 level, buyers may test towards the 1.2960 and 1.3000 resistance levels.
Bitcoin slipped lower on the cryptocurrency market this week, as the BTCUSD pair turned technically bearish for the first time in two weeks. Bitcoin fell below its key 200-day moving average, which encouraged traders to sell the number one cryptocurrency below the $9,000 level. The BTCUSD pair eventually found technically support around the $8,500 level, as the pair came closer to eroding its late-October trading gains. Litecoin also slipped below the $60.00 support level as weakness across the broader market pushed the fifth-largest cryptocurrency lower.
- The BTCUSD pair is only bearish while trading below the $9,200 level, key support is found at the $8,500 and $8,000 levels.
- If the BTCUSD pair trades above the $9,200 level, buyers may test towards the $9,600 and $10,000 resistance levels.
The Reserve Bank of New Zealand shocked financial market participants this week as they kept interest rates unchanged at 1.00 percent. The central bank was widely tipped to slash interest rates to a record low, 0.75 percent, as New Zealand’s inflation and employment prospects continue to dwindle. The RBNZ said they intended to keep interest rates on hold for now and would consider lowering rates if economic conditions deteriorated further. The RBNZ delivered a fifty basis points rate cut in August, as the ongoing Sino-US trade war caused significant problems to New Zealand’s economy.
- The NZDUSD pair is only bullish while trading above the 0.6840 level, key resistance is found at the 0.6960 and 0.7000 levels.
- If the NZDUSD pair trades below the 0.6840 level, key support is located at the 0.6810 and 0.6760 levels.