Macro Afternoon

Advertisement

by Chris Becker

A mixed day in Asia again as the USD firmed and commodities were essentially unchanged as most Japanese and Chinese shares suffered losses for the day.

The Japanese Nikkei took back all of its recent gains after most stocks went ex-dividend, sending the bourse down 1.3% as the Yen weakened ever so slightly against the USD.

Chinese stocks remain under pressure with the Shanghai Composite attempting another rally into the close to make up for this mornings losses, but still down 0.2% for the day. At 2992 points, it remains below terminal support at 3000 points.

As for the ASX200, it was the standout of the region, surging at the open before falling back to eke out a 0.1% gain for the day. AGL Energy surged on a share buy back while its counterpart Origin slumped in response.

Advertisement

Eurostoxx and S&P500 futures are up 0.3% going into the London session so its not all bad news, but I’m watching the German DAX closely as it teeters on daily support at 10300 points:

DAX30.fsDaily

In commodities, watch out for oil to potentially breakdown tonight, with WTI crude continuning to slump in Asia today and threatening support at the $44.50 zone:

Advertisement
WTI.fsH4

In currencies, the Aussie dollar continues to shine, almost melting up 77 cents against the USD making another new daily high. This is way overcooked as a potential bearish rising wedge pattern is building on the hourly and 4 hourly chart, but this could have legs up to longer term resistance at 77.30 or so:

AUDUSDH1
Advertisement

The data calendar tonight more wonky central bank speeches, with ECB Mario Draghi in London and a few others. In the US theres durable goods orders for August before Fed Chair Janet Yellen testifies in Congress.