by Chris Becker
Well that was a fun ride for Aussie dollar traders as deflation dipped into the Lucky Country just before the FOMC Meeting, which was more hawkish and reassuring than expected. This mood of steady as she goes lifted stocks somewhat, mainly pushed by oil prices as bonds finally put on some gains while the USD treaded water against the majors. We go into the Asian session tentatively with the BOJ meeting today with expectations high for another round of stimulus packages.
Yesterday the Shanghai Composite struggled again, falling 0.6% to remain below 3000 points, still confirming the bearish rising wedge pattern. This suggests another test of the support line at 2850 points soon and if failed, a retest of terminal support all the way down to 2600:
