by Chris Becker
Its a new month and global risk markets are slowly coming around to a new lower dollar future as the King of currencies continues to slip amid the commodity bubble and bets surrounding future interest rate rises push forward into an unknown future. The big moves have been in gold which has a stellar rise to $1300USD per ounce and in the other major currencies, with Euro and Yen both appreciating sharply. This is setting a poor tone on domestic bourses, but US stocks are holding on to support as earnings season rolls in with little surprises outside Apple as banks lift higher. That won’t be the case this morning on the ASX200 when the only thing holding up the whole stinking edifice – the financials index – will be slammed with news that outperformer ANZ profit slumped and cut its golden dividend. Watch the exit on that one as we also head into today’s RBA interest rate meeting and the Budget later tonight!
Recapping Asia where yesterday the Shanghai Composite was closed for Labour Day (as was Queensland but not the rest of the country – nuts). The current price action suggests some support at the 2900 point level but no signs of bullish action on the upside. If support is broken here we will retest terminal support all the way down to 2600 to complete the confirmed bearish rising wedge pattern:
