Morning wrap (16.08.2021)

• Stocks in Asia are trading mostly lower. Nikkei fell 1.7%, S&P/ASX 200 dropped 0.2%, while Kospi is closed due to a bank holiday. Indices from China trade mixed
• DAX futures point to a slightly lower opening of the European cash session
• Industrial production in China rose 6.4% YoY in July, the lowest rate in 11 months, and below expectations of a 7.8% rise
• China July house prices 4.6% y/y vs +4.7% prior
• PBOC injects 600B yuan via one year Medium-term Lending Facility (MLF)
• Japan Q2 prelim GDP rose 0.3% q/q  while market expected 0.2% rise
• Melbourne lockdown will be extended for another two weeks
• US 10-year Treasury yields fell to 1.248%, the lowest level since end of July
• Bitcoin trades above $47,000, Ethereum topped $3,200
• Oil drops around 1% while precious industrial metals trade lower
• JPY and NZD are the best performing major currencies while AUD and CAD lag the most

GOLD price rose sharply on Friday and managed to break above major resistance at $1767 which coincides with 61.8% Fibonacci retracement of the last upward wave. If current sentiment prevails, then the next target for bulls  is located at $1800. Source: xStation5