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    Morning Report – Monday 19th August

    THE DAILY REPORT

    MORNING REPORT

    TOP THINGS TO KNOW

    Trump 'not ready' for China trade deal, dismisses recession fears

    (Reuters 19/08/2019) - U.S. President Donald Trump and top White House officials dismissed concerns that economic growth may be faltering, saying on Sunday they saw little risk of recession despite a volatile week on global bond markets, and insisting their trade war with China was doing no damage to the United States.

    “We’re doing tremendously well, our consumers are rich, I gave a tremendous tax cut, and they’re loaded up with money,” Trump said on Sunday.

    But he was less optimistic than his aides on striking a trade deal with China, saying that while he believed China was ready to come to an agreement, “I’m not ready to make a deal yet.”

    He hinted that the White House would like to see Beijing resolve ongoing protests in Hong Kong first.
    “I would like to see Hong Kong worked out in a very humanitarian fashion,” Trump said. “I think it would be very good for the trade deal.”

    Even with the talks stalled for now and the threat of greater tariffs and other trade restrictions hanging over the world economy, Kudlow said on “Fox News Sunday” the United States remained “in pretty good shape.”

    “There is no recession in sight,” Kudlow said. “Consumers are working. Their wages are rising. They are spending and they are saving.”

    GBP/JPY technical analysis: Another run-up to multi-day old resistance-line

    (FXStreet 19/08/2019) - GBP/JPY remains on the road to recovery as it takes the bids to 129.25 amid initial Asian session on Monday.

    While short-term ascending trend-line portray the pair’s strength, 14-bar relative strength index (RSI) indicates further upside with gradually picking levels amid lower prices.

    However, a descending trend-line since August 02, at 129.56 now, followed 100-bar moving average on the four-hour chart (4H 100MA) at 129.85 can will question the pair’s further upside ahead of 130.00 round-figure.

    In a case where prices remain strong above 130.00, 130.30 holds the gate for the additional rise to July 30 low near 131.60.

    On the downside, 128.86 and 128.28 are likely near-term support-lines that sellers should be on the lookout for.

    During the pair’s decline below 128.28, August 14 low near 127.47 and the month;y bottom surrounding 126.54 might flash on bears’ radar.

    AUD/USD on the back foot as trade/political pessimism welcomes the new week

    (FXStreet 19/08/2019) - While Friday’s risk recovery triggered the AUD/USD pair’s pullback, latest statements from the US President Donald Trump exert downside pressure on the Aussie as it trades near 0.6780 during early Monday morning in Asia.

    The US President Donald Trump further dimmed the prospects of any meaningful progress during the September month US-China trade talks with this latest media remarks. In a nutshell, Mr. Trump treated China’s Huawei as a national threat and warning the dragon nation of negative impacts on trade negotiations if it uses the force in Hong Kong. Both of which will give a heavy workload for Chinese media to start the week with.

    Technical Analysis

    The immediate symmetrical triangle is on the verge of breaking out the current 0.6790 – 0.6760 range, which in turn can flash 0.6825/30 and 0.6730 on the chart based upon the side of breaks. However, 0.6900 and 0.6677 are likely the key levels to watch during additional momentum.

    TRADE OPPORTUNITIES

    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.

    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.

    DOW JONES Daily – Short positions below 26420 with targets at 25220 & 24690.

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

    AUDUSD Daily – Short positions below 0.6850 with targets at 0.6740 & 0.6670.

    EURUSD Daily – Short positions below 1.1230 with targets at 1.1025 & 1.0950.

    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.

    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.

    Economic Announcements
    (times in AEST)

    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 www.forexct.com.au. 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 19, 2019 | 5:47 AM