Action Insight Daily Report 8-30-19

Markets Cautious as Hong Kong Tensions Overshadow Trade Optimism

Action Insight Daily Report 8-30-19 Markets Cautious as Hong Kong Tensions Overshadow Trade Optimism Asian markets opened higher earlier today following the strong close in US markets. China appeared to be backing down on further tariff retaliation, and there's hope for continuation in US-China trade negotiation. But sentiments turned sour quickly on escalating tensions in Hong Kong. Two prominent activists in HK are arrested today, while two protest organizers were assaulted yesterday. These came ahead of a banned rally tomorrow, which protests against the August 31, 2014 decision by the Chinese government to block free election in Hong Kong, which triggered the 79-day umbrella movement. Conflicts are expected in the upcoming weekend, which could lead to implementation of martial law like emergency law. It should be remembered that US President Donald Trump has put resolution of HK tension as precondition to any trade deal with China. There is also bipartisan push for a HK human rights and democracy act in Congress in September, which could trigger furious response from China too. If the Chinese government cannot resolve the tensions in HK in internationally acceptable way, there is little chance of having a trade deal with the US. In the currency markets, Yen is currently trading broadly higher as traders turned cautious. Dollar is the second strongest one for today, followed by Sterling. On the other hand, commodity currencies are pressured again, with New Zealand Dollar leading the way down. Over the week, Dollar is currently the strongest one, followed by Canadian. Kiwi is the weakest followed by Swiss Franc and then Euro. Technically, EUR/USD's break of 1.1051 support now puts focus on 1.1026 low. Firm break there will resume down trend from 2018 high of 1.2555. USD/CHF's breach of 0.9877 resistance suggests further rise back to 0.9975 resistance. 106.73 resistance in USD/JPY will be a major focus today for confirming underlying strength of the greenback. In Asia, Nikkei closed up 1.19%. Hong Kong HSI is down -0.43%. China Shanghai SSE is down -0.41%. Singapore Strait Times is up 0.41%. Japan 10-year JGB yield is up 0.0065 at -0.277. Overnight, DOW rose 1.25%. S&P 500 rose 1.27%. NASDAQ rose 1.48%. 10-year yield rose 0.050 to 1.519. 30-year yield rose 0.041 to 1.979, staying below 2% handle. Full Report Here Australia building approvals dropped -9.7%, activity taking another leg down UK GfK consumer confidence dropped to -14, reduced confidence affecting views... Japan industrial production rose 1.3%, but retail sales dropped -2.0% Stocks jump as US-China trade talk at different level scheduled IMF Lagarde: ECB hasn't hit effect lower bound on interest rates Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol BOC Prepares for Insurance Rate Cut US Crude Oil Shows Double- Digit Decline China Cuts Banks' Lending Rates as Trade War Escalates Central Bank Views | China Watch | Oil N' Gold | Special Topics EUR/USD Daily Outlook Daily Pivots: (S1) 1.1035; (P) 1.1064; (R1) 1.1085; More... EUR/USD's break of 1.1051 minor support suggests resumption of fall from 1.1249. Intraday bias is back on the downside for 1.1026 low. Decisive break there will resume larger down trend from 1.2555, for 1.0813 fibonacci level next. On the upside, above 1.1093 minor resistance will turn bias to the upside and extend the consolidation from 1.1026. But near term outlook will remain bearish as long as 1.1249 resistance holds. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings Historically, September Has Been A Bearish Month For USD/CHF Market Brief: Mixed Response From Trade 'Developments' GOLD Price Correcting Gains While Crude Oil Price Is Climbing USD/JPY Facing Uphill Task Near 107.00 Resistance China Soothes Frazzled Nerves End Of Month Flows May Be Moving Markets Eurozone Inflation Prints Due ahead of Draghi's 'Last Hurrah' Fundamental Analysis | Technical Analysis In-depth Reports China Cuts Banks' Lending Rates as Trade War Escalates Italy: Salvini May Have Thrown a Boomerang Can Monetary and Fiscal Stimulus Save the Global Economy from Trump's Trade War? Trade War, Not Protests, is Key Reason For Slowdown. USDHKD Peg Not at Risk RBA: 50bps in Cuts Look Assured But Global Factors May Require More Stimulus Will German Fiscal Stimulus Be Too Little, Too Late? Economic Calendar GMT Ccy Events Actual Forecast Previous Revised 22:45 NZD Building Permits M/M Jul -1.30% -3.90% -4.00% 23:01 GBP GfK Consumer Confidence Aug -14 -11 -11 23:30 JPY Tokyo CPI Core Y/Y Aug 0.70% 0.80% 0.90% 23:30 JPY Jobless Rate Jul 2.20% 2.30% 2.30% 23:50 JPY Retail Trade Y/Y Jul -2.00% -0.60% 0.50% 23:50 JPY Industrial Production M/M Jul P 1.30% 0.30% -3.30% 1:30 AUD Building Approvals M/M Jul -9.70% 0.00% -1.20% -0.80% 1:30 AUD Private Sector Credit M/M Jul 0.20% 0.20% 0.10% 5:00 JPY Housing Starts Y/Y Jul -4.10% -5.40% 0.30% 6:00 EUR German Retail Sales M/M Jul -1.40% 3.50% 7:00 CHF KOF Leading Indicator Aug 95.2 97.1 8:30 GBP Mortgage Approvals Jul 66K 66K 8:30 GBP Money Supply M4 M/M Jul 0.20% 0.10% 9:00 EUR Eurozone Unemployment Rate Jul 7.50% 7.50% 9:00 EUR Eurozone CPI Estimate Y/Y Aug 1.00% 1.10% 9:00 EUR Eurozone CPI Core Y/Y Aug A 1.00% 0.90% 12:30 CAD GDP M/M Jun 0.10% 0.20% 12:30 CAD Industrial Product Price M/M Jul 0.40% -1.40% 12:30 CAD Raw Materials Price Index M/M Jul 1.50% -5.90% 12:30 USD Personal Income Jul 0.30% 0.40% 12:30 USD Personal Spending Jul 0.50% 0.30% 12:30 USD PCE Deflator M/M Jul 0.20% 0.10% 12:30 USD PCE Deflator Y/Y Jul 1.40% 1.40% 12:30 USD PCE Core M/M Jul 0.20% 0.20% 12:30 USD PCE Core Y/Y Jul 1.60% 1.60% 13:45 USD Chicago PMI Aug 47.9 44.4 14:00 USD U. of Mich. Sentiment Aug F 92.3 92.1

Action Forex Company Limited | Room 804, 8/F. , Prosperity Centre, 982 Canton Road, Mongkok, Kowloon 852 Hong Kong SAR China Unsubscribe mondemand.forex@blogger.com Update Profile | About Constant Contact Sent by contact@actionforex.com in collaboration with Try email marketing for free today!