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    Morning Report – Friday 16th August




    China to counter latest U.S. tariffs as Trump vows deal on U.S. terms

    (Reuters 16/08/2019) - China on Thursday vowed to counter the latest U.S. tariffs on $300 billion of Chinese goods but called on the United States to meet it halfway on a potential trade deal, as U.S. President Donald Trump said any pact would have to be on America’s terms.

    The Chinese finance ministry said in a statement that Washington’s tariffs, set to start next month, violated a consensus reached between Trump and Chinese President Xi Jinping at a June summit in Japan to resolve their disputes via negotiation.

    In a separate statement, China’s foreign ministry spokeswoman, Hua Chunying, said, “We hope the U.S. will meet China halfway, and implement the consensus of the two heads of the two countries in Osaka.”
    China hopes to find mutually acceptable solutions through dialogue and consultation on the basis of equality and mutual respect, she added.

    Trump, who is seeking re-election in 2020 and had made the economy and his tough stance on China a key part of his 2016 campaign for the White House, on Thursday said any agreement must meet U.S. demands.

    “China, frankly, would love to make a deal, and it’s got to be a deal on proper terms. It’s got to be a deal, frankly, on our terms. Otherwise, what’s the purpose?” Trump said in an interview on New Hampshire radio station WGIR.

    The trade picture is further complicated by continuing unrest in Hong Kong, which Trump on Wednesday tied to any possible agreement, saying Xi must first work out the situation in the territory with protesters.
    On Thursday, he used Twitter to call on the Chinese president to personally meet with protesters to spur “a happy and enlightened ending to the Hong Kong problem.”

    WTI prices firm on the $54 handle, bulls look to a test towards $56.80 again

    (FXStreet 16/08/2019) - Oil prices have been on the back foot since July but have recently found some traction and bulls are stepping in to protect the 5 handle. Spot oil, overnight, ranged between $53.79bbls and $55.30bbls, down -0.47% on the day while oil futures ended lower for a second consecutive session.

    West Texas Intermediate crude for September delivery dropped 76 cents, or 1.4%, to settle at $54.47 a barrel on the New York Mercantile Exchange, after trading as low as $53.77. In Asia, prices are firmer by 0.26% so far.

    Geopolitics driving price

    On the geopolitical front specifically related to oil prices, analysts at TD Securities explained that the US Justice Department is looking to seize the Iranian tanker that had previously been held by the UK remain in the shadows of risk sentiment, which remains the primary driver for energy prices:

    "While the previous round of weakness prompted trend followers to strap on more shorts, the algos could well cover their shorts in the near-term as downside momentum fails to gather steam. Indeed, the bar is fairly low for CTAs to cover some recently added shorts in WTI, with the key trigger level standing just above $56.30/bbl, with our estimated key trigger for Brent further north at $63.40/bbl."

    WTI levels: Technically, the cluster of the 50 and 200 daily moving averages that have a confluence with the 38.2% Fibo' keeps a lid on recoveries. The prices are back to test below the 23.6% threshold and bears can target a break towards the 52 handle. On the upside, if the bulls manage a break of said confluence resistance, then there is space for a recovery to the 58 handle to meet trend line resistance


    Below are Trading Central's Intraday preference recommendations. Short (SELL) positions and long (BUY) positions have two targets issued which may be used as take profit levels. Above or below a certain figure indicates the pivot level which may be used as a level for stop loss.

    GOLD Daily – Long positions above 1465.00 with targets at 1565.00 & 1600.00.

    This is general advice only and does not take into account your personal circumstances. “It is the Policy of ForexCT to recommend the use of stop/loss function to reduce risk of significant losses to customers.

    PALLADIUM 30 Minute – As long as 1429.25 is support look for 1486.25.

    FTSE Daily – Short positions below 7305.00 with targets at 7000.00 & 6750.00.

    GOLD Daily – Long positions above 1450.00 with targets at 1535.00 & 1565.00.

    AUDJPY Daily – The downside prevails as long as 73.78 is resistance.

    ASX 200 Daily – Short positions below 6630.00 with targets at 6210.00 & 6100.00.

    SILVER Daily – Long positions above 16.3500 with targets at 17.7000 & 18.2000.

    HANG SENG Daily – Short positions below 26300 with targets at 24550 & 23780.

    This is general advice only and does not take into account your personal circumstances. “It is the Policy of ForexCT to recommend the use of stop/loss function to reduce risk of significant losses to customers.

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    Risk Warning
    Trading FX and CFDs involves a substantial degree of risk and should only be undertaken with risk capital. Please consider our PDS and FSG before trading with us. A copy can be found on our website Forex Capital Trading Pty Ltd provides general advice that does not take into account your objectives, financial situation or needs. Investors do not own or have rights to underlying assets. Forex Capital Trading Pty Ltd is regulated by ASIC (AFSL 306400), ABN (69119086270). Forex Capital Trading Pty Ltd’s AFS license and Australian regulation only applies to the financial services being provided in Australia only.

    Posted: August 16, 2019 | 5:46 AM