By Chris Becker
Asia responded not so well to last nights rout on US markets, with the ASX200 dropping nearly 1% or 32 points to be under 4500 points – see a full roundup below.
Other Asian markets were down more, with the Hang Seng looking like putting in a top down over 2% and the Shanghai Composite falling similarly, even though some good (read:fixed) data should be coming through tomorrow, this is all about the US. The Nikkei 225 is also off 1.5% – only the Kiwis, after a horror unemployment result today – were let off with a positive print.
The Aussie (AUD/USD) jumped 20 pips on local unemployment data but took all that back and more as the risk off mood spreads, and it hovers just above 1.04 against the USD:
The US dollar index is the arbiter of all this – not even down 4% after QE3 – its building on its breakout above the 200 day moving average:
Gold (USD)’s short term burst has been put on hold, finding strong resistance at $1720USD per ounce after bouncing off its own 200 day moving average:
A wide rout with only staples getting off lightly today, although looking through the numbers a few divisions of Megabank have lifted – but ANZ dropped nearly 5% as it went ex-dividend today. WBC and NAB will follow tomorrow – this paves the way for those who want to short the banks (guilty) to start pulling triggers:
For the index, the chart shows a trendline break, but not strong support at 4440 points unlike the S&P500 which definitively broker through last night. Theres resistance overhead here and for now the bourse is moving sideways caught between – a break below 4440 points will likely see a drop to 4000:
This free daily update should be read alongside Live Trades articles, published every morning at Macro Investor, and placed in context with the longer trends and macro drivers within the overall technical picture, where Former “Trading Week” readers will find it reborn as ”Technicals“, published 8.30am each Monday morning at Macro Investor. Chris Becker is an investment strategist at Macro Investor, Australia’s leading independent investment newsletter covering stocks, trades, property and fixed interest. A free 21-day trial is available at the site. You can follow Chris on Twitter.
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