CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Daily brief: Bitcoin aims at 20,000 after risk-on move weighs on US dollar

Bitcoin prices are targeting the 20,000 psychological level after an overnight risk-on move that weighed on the US Dollar and supported equity indexes. That move may extend into today’s APAC trading.

Tuesday’s Asia-Pacific outlook

Wall Street stock indexes moved higher overnight, the US dollar dropped and risk assets like Bitcoin moved higher. The Institute for Supply Management’s latest purchasing managers’ index (PMI) for the United States manufacturing sector showed that prices paid by firms bell in September.

The ISM’s prices paid index crossed the wires at 51.7, down from 52.5 in August. That suggests easing inflation pressures that may weigh on Fed rate hike bets.

The benchmark S&P 500 closed 2.59% higher, led by its energy sector, which posted an impressive 5.81% gain. WTI crude and Brent crude oil prices rose after rumors of a possible OPEC+ production cut circulated around markets.

The oil cartel meets in Vienna later this week when it is speculated that the group will announce a 1 million barrel per day (bpd) production cut.

The Reserve Bank of Australia’s interest rate decision is due to cross the wires at 03:30 UTC. The consensus expects a 50-basis point rate hike at today’s meeting, according to a Bloomberg survey of economists. Cash rate futures are pricing in a 62% chance that will happen. However, after this meeting, expectations start to lean towards smaller rate hikes, which could weigh on the Aussie dollar as the Fed appears relatively hawkish and earlier in its hiking cycle.

Elsewhere, Chinese markets are mostly closed for the National Day Golden Week holiday. The USD’s risk-on decline is a welcome development for China, given that the offshore yuan is vulnerable during this period. The majority of bank forecasters see the yuan continuing to weaken throughout the rest of the year despite China’s recent measures to control the currency’s slide.

South Korea is set to report PMI data for September.

Bitcoin technical outlook

Bitcoin prices joined the overnight rally, with BTC/USD gaining around 2.5%. A zone of support around 18,000 to 19,000 has supported prices since June. A break higher may occur as the Relative Strength Index (RSI) approaches its center line on the daily timeframe. A break higher would target the 20,000 psychological level and the 50- and 100-day Simple Moving Averages.

BTC/USD daily chart

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.