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    Morning Report – Wednesday 14th August

    THE DAILY REPORT

    MORNING REPORT

    TOP THINGS TO KNOW

    Trump delays tariffs on Chinese cellphones, laptops, toys; markets jump

    (Reuters 14/08/2019) - U.S. President Donald Trump on Tuesday backed off his Sept. 1 deadline for 10% tariffs on remaining Chinese imports, delaying duties on cellphones, laptops and other consumer goods, in the hopes of blunting their impact on U.S. holiday sales.

    The delay which, affects about half of the $300 billion target list of Chinese goods - along with news of renewed trade discussions between U.S. and Chinese officials - sent stocks sharply higher and drew cautious relief from retailers and technology groups.

    Trump’s 10% tariffs will be effective from Dec. 15 for thousands of products including clothing and footwear, possibly buttressing the holiday selling season from some of the fallout from the protracted trade spat between the world’s two largest economies.

    “We’re doing this for Christmas season, just in case some of the tariffs would have an impact on U.S. customers,” Trump told reporters in New Jersey.

    “Just in case they might have an impact on people, what we’ve done is we’ve delayed it so that they won’t be relevant to the Christmas shopping season.”

    The U.S. Trade Representative’s Office announced the decision just minutes after China’s Ministry of Commerce said Vice Premier Liu He conducted a phone call with U.S. trade officials.

    Liu agreed with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin to speak again by phone within the next two weeks, the ministry said.

    Oil soars near 5% as U.S. delays tariffs on some Chinese goods

    (Reuters 14/08/2019) - Oil prices on Tuesday jumped by the most so far this year after the United States said it would delay imposing a 10% tariff on certain Chinese products, easing concerns over a global trade war that has pummeled the market in recent months.

    “The U.S.-China trade war has caused energy demand growth to take a big hit. Any glimmer of hope revives the prospects for a more positive demand landscape,” said John Kilduff, partner at energy hedge fund Again Capital Management in New York.

    Brent LCOc1 futures rose $2.73, or 4.7%, to settle at $61.30 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 gained $2.17, or 4.0%, to settle at $57.10.

    That was the biggest daily percentage gain for Brent since December when the contract gained 7.9%.

    In addition to the cooling of the U.S.-China trade war, analysts said prices were propped up by expectations U.S. crude inventories declined last week and a belief Saudi Arabia will stick with production cuts.

    In the United States, analysts forecasts crude stockpiles fell by 2.8 million barrels last week, according to a Reuters poll. “If we get the drawdown in (U.S.) inventory that most people are looking for, that is going to get the market a lot tighter,” said Flynn at Price Futures.

    Gold drops from six-year highs on turn-around Tuesday

    (FXStreet 14/08/2019) - Gold prices on turn-around Tuesday flipped over from six-year highs following news that the US was delaying tariffs on China with hopes of further talks to take place in September.

    Spot gold dropped from the highs of $1,535 to a low of $1,480, ending on Wall Street - 0.60% as market sentiment still remains cautionary on any signs of progress between the US and China - (Hong Kong could well be an underestimated risk to the trade progress between the two nations and global growth). As for futures, Gold for December delivery on Comex dropped $3.10, or 0.2%, to settle at $1,514.10 an ounce after trading as high as $1,546.10 an ounce. Overall, the price of the safe-haven metal is still up 18% year-to-date rise, most of the rise in august alone.

    Gold levels: Gold is holding territories above the psychologically important 1500 level, although 1480 has shown its resilience on Tuesday. A break there pens risk to 1450s and 1402. On a continuation, to the upside, the 1528/30s comes as a prior support area where the price would be expected to hold initial tests. However, on a full-on break higher, bulls will look to the 127.2% Fibo target which is located around 1,560, guarding the Oct 2012 highs at 1795.

    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.

    EURGBP 30 Minute – The downside prevails as long as 0.9293 is resistance.

    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.

    CRUDE OIL 30 Minute – Long positions above 56.02 with targets at 57.99 & 58.60.

    AUDJPY 30 Minute – The upside prevails as long as 72.27 is support.

    GBPUSD Daily – Short positions below 1.2075 with targets at 1.2040 & 1.2015.

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

    HANG SENG Daily – Long positions above 24840 with targets at 25810 & 26130.

    AUDNZD Daily – Our next up target stands at 1.0690.

    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 14, 2019 | 5:44 AM