Stocks in Asia went higher for a second day, shrugging off geopolitical tensions. Tensions between the U.S. and Beijing remain in focus after China condemned the U.S. for adding 33 Chinese entities to a trade blacklist. At the same time, China sought to reassure HK that its judiciary world remains independent under new national security law. U.S. Treasury yield was little changed at 0.66%.


USD lost traction on Tuesday due to the bullish sentiment. The market is encouraged by the reopening of the major global economies. Recently, California allowed churches to reopen with a limited congregation of below 100. Further to ease the fears could be US President Donald Trump’s refrain from opposing the Hong Kong bill during his latest comments.


Copper prices tumbled lower as the market opened on Tuesday, with investors focused on the rising Sino-US tensions while supply constraints eased. Meanwhile, according to a report by Reuters, China's copper consumption is weakening as a backlog of factory orders clears and the call on refined metal to replace limited scrap supply fades. The most-traded July copper contract on the ShFE fell as much as 1.2% to a one-week low of 43,210 yuan ($6,054.36) a tonne, before closing 0.2% lower at 43,650 yuan.


Gold traded sideways as investors swayed between optimism over the reopening of the global economy and concerns over the lingering tensions in Hong Kong and Venezuela. According to Reuters, China's foreign ministry office in Hong Kong and the city's security chief defended proposed security laws by describing some acts in mass pro-democracy protests last year as terrorism. Elsewhere, a second Iranian vessel carrying fuel had entered Venezuelan waters, in defiance of the US sanctions. 

Oil prices opened and drifted higher during today’s Asian trading sessions. This price action came following a prediction from Russia’s energy ministry tweeting that they see global oil demand and supply balancing over the next two months. Further, Russia’s energy minister, Alexander Novak pointed out that global curbs have exceeded the amount agreed upon by the coalition. In line with oil prices, we see that the CAD should be rising in line with oil prices. However market observers warned that investors should still trade with caution as no one knows when we could see a sharp decline in demand again should a 2nd wave of virus outbreak happen.


Technical & Trade views


USDCAD (Intraday bias: bullish above 1.3959)

We turned bullish as price is approaching our 1st support  where the 38.2% fibonacci retracement and horizontal overlap support are.Price is likely to bounce here towards our 1st resistance.Stochastics also shows support here.


UKOIL (Intraday bias: Bearish below 36.66)

Oil prices drifted higher, however failed to break above recent swing high at 36.66. As long as 1st resistance at 36.66 holds, a short term set back below, towards 1st support at 32.03 can be expected. Further RSI momentum indicator is testing descending resistance where price reacted in the past with room for further downside potential.


XAUUSD ( Intraday bias: bearish below 1767.712) 

Price traded sideways previously. We remain bearish below our first resistance, in line with our 127.2% fibonacci retracement and 100% fibonacci extension, where we could see a further drop to our first support level. Stochastic is facing bearish pressure from our resistance as well. 


XCUUSD ( Intraday bias: bullish above 2.36914)

We caught the bounce nicely from our first support level and remained bullish above our support at 2.36914, in line with our horizontal pullback support, ascending support line and 61.8% fibonacci retracement where we could see a bounce to our first resistance level. RSI and Ichimoku cloud are showing signs of bullish pressure in line with our bullish bias.