The S&P 500 edged up 0.3% on Thursday, 10 July, closing at a marginal new record high of 6,280. However, bullish momentum faded in the Asian session, with S&P 500 and Nasdaq 100 E-mini futures both down 0.3% amid renewed tariff anxieties.
Trump escalates trade tensions with Canada
US President Trump announced a tariff hike on Canadian imports to 35%, up from the current 25%, set to take effect on 1 August. These apply to Canadian goods not covered under the USMCA trade pact. He also hinted that the base tariff rate on all US trading partners might rise from 10% to 15–20%.
Asia stocks rally on hopes of China stimulus
Asia Pacific stock markets largely shrugged off US tariff threats, buoyed by reports that China may unveil a new stimulus plan targeting its embattled property sector. The rumoured high-level policy meeting next week is said to mirror the 2015 Central Urban Work Conference, which spurred infrastructure and urban development spending.
Hang Seng and STI extend gains; Nikkei lags
Hong Kong’s Hang Seng Index jumped 1.7% to a four-month high, breaking above its 20-day moving average for the first time since 24 June. Singapore’s Straits Times Index climbed 0.4%, on track for a fifth straight record close, nearing the psychological 4,100 level. In contrast, Japan’s Nikkei 225 fell by 0.2%.
FX market mixed; USD gains against JPY and CAD
The US dollar strengthened most against the Japanese yen (-0.4%) and Canadian dollar (-0.3%) in today’s Asia session. Meanwhile, the Australian dollar held steady, with AUD/USD staying above its 20-day moving average support around 0.6540.
Gold climbs for a third day despite stronger dollar
Gold (XAU/USD) defied the firmer dollar, rising 0.5% intraday for its third straight gain. Ongoing tariff fears provided safe-haven support, pushing prices toward the key intermediate resistance at US$3,360.
Economic data releases
Fig 1: Key data for today’s Asia mid-session (Source: MarketPulse)
Chart of the day – Bullish momentum remains intact in AUD/USD
Fig 2: AUD/USD minor trend as of 11 July 2025 (Source: TradingView)
The recent up move seen in the AUD/USD from this Tuesday, 8 July’s minor swing low of 0.6485, and the reintegration back above its 20-day moving average. These observations suggest that the minor corrective decline sequence from the 1 July high to the 8 July low is likely to have ended (see Fig 2).
In addition, the hourly RSI momentum indicator has managed to stage a bounce right at a parallel ascending support and the 50 level, which highlights a revival of bullish momentum conditions.
Watch the 0.6540 key short-term pivotal support, and a clearance above 0.6600 increases the odds of a new bullish impulsive up move sequence to see the next intermediate resistances coming in at 0.6630/6645 and 0.6690/6700 (Fibonacci extension and upper boundary of the minor ascending channel).
However, failure to hold at 0.6540 negates the bullish tone for a slide to revisit the next immediate supports at 0.6510 (also the 20-day moving average) and 0.6480 (also the 50-day moving average).
