Market Brief: Trade Optimism Sets The Tone

A summary of news and snapshot of moves from today’s Asia session.

  • News that US and China are set to resume trade talks in Washington next month extended yesterday’s relief rally.
  • Commodity currencies (AUD, NZD and CAD) were quick to react and are today’s strongest majors. AUD/USD rebounded to its highest level since 1st August although has stalled beneath 0.6832 resistance – a pivotal level traders should be keeping an eye on.
  • The positive sentiment also saw PBOC weaken their FIX ad allow USD/CNH to fall to an 8-day low. USD/JPY hit resistance at 106.78, GBP/USD remains within its bearish channel but could be headed for a break higher. WTI trades in a tight range around $56. Gold and silver remain stubbornly high, despite the weaker USD pricing, although both trade slightly lower for the session.

  • Equity markets were broadly higher on trade optimism today, adding to yesterday’s relief rally fuelled by improved Chinese data and Hong Kong’s withdrawal of the extradition treaty.
  • The rebound was led by Japan and China, with the Topix and CSI gaining 1.84% and 1.62% respectively. The exception to the rally was the Hang Seng Index (HSI) which trades -0.13% lower. Index futures are also pointing higher, with the S&P500 E-mini breaking to a 1-month high.
  • The Hang Seng, which rallied over 3.7% yesterday when Hong Kong’s PM officially withdrew the extradition treaty, failed to extend gains today. Whilst the withdrawal was a step in the right direction, protestors still want their four remaining demands met. Three of which include the PM stepping down, HK having control over the selection of a new leader and the end to police brutality


Up Next:

  • UK's PM Boris Johnson is set to 'speak to the public' around 3pm GMT today, and is expected to say he wants an election and that the "surrender bill" would effectively overturn the largest democratic bill in he UK's history. 
  • ISM non-manufacturing (services) is expected to rise to 54 from 53.7 prior, although the weak print from ISM manufacturing could have traders on edge for a soft print from services today. Whilst it remains expansive at 53.7, it has nose-dived since peaking at 60.8 in 2018. Keep USD crosses and US indices on your radar around this release.
  • ISM aside, it’s mostly 2nd tier data, so it could be trade which remains at the forefront for traders. This places commodities, commodity FX and JPY pairs on trader’s radars.


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.