Macro Afternoon

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by Chris Becker

A non-surprising GDP print from China with official figures lining up with what the official figures want GDP to be, with reactions muted across risk markets. Only the Australian dollar made any moves on currency markets as the others prep for tonights economic data and response. Stock markets are generally in the green but nothing to get excited about with Eurostoxx and S&P futures barely moving before the London open.

The Shanghai Composite is dead flat going into the close with the Hang Seng down slightly, both still above their 3000 and 23000 point support levels respectively, absorbing the GDP and industrial production (down every so slightly) prints well enough.

In Japan, the Nikkei has lifted another 0.3% as Yen strengthened, but still struggling to get back above daily ATR resistance barely pipping above 17000 points.

The USDJPY pair has broken its four hourly and daily trendline as seen on the hourly chart below with the selloff in USD possibly pausing tonight. But this pair needs to get back above 104.40 to help the Nikkei further:

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USDJPYH1

For the ASX200, it was a very solid day, closing up nearly half a percent to 5435 points, the biggest movers up this time the property giants, rebounding after their recent losses. Gold miner Newcrest also putting on some gains, up over 3% to $22.10 per share. A breakout maybe on order here if the gold price follows through later with the daily chart showing a break above the downtrend line from the July high, with momentum about to crossover:

ncm_ax_price_daily_and_commodity_channel_index___daily___40_periods.26apr16_to_26oct16
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Most of the action was in Aussie dollar, which slumped after an early breakout in the morning on the GDP print, down to 76.60 but is being supported here going into the London open. The 77 handle against USD is very strong resistance here and bears watching tonight:

AUDUSDH1

The data calendar tonight includes UK unemployment stats, US housing starts plus the weekly DOE oil inventory report, with the Canadian Central Bank also making its monthly meeting.

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