ASX Shares Daily – 10th October

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By Chris Becker

Another volatile day on Asian markets with the ASX200 closing down 0.3% or 14 points to 4490 – I’ll take a closer look at the bottom of the post including technical analysis of the bourse.

The Nikkei 225 was assaulted, down 2% to just under 8600 points and remains in a sideways range, with the Hang Seng having a scratch day, alongside the Shanghai Composite. Not much action after the Chinese holiday…

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Aussie bond yields had a quiet day, and the Aussie battler (AUD/USD) refuses to fall lower, continuing to rally off its support levels.

The Euro/USD slipped and the US Dollar (DXY Index) gained again, and this bounce – which I expected to rollover and go back on its downtrend has found more strength – if it goes to 81 points, this QE3 rally could be over…

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This is being somewhat reflected in the undollar currency gold (USD)  which continues to shake off heavy resistance overhead at $1800USD per ounce level, and remains in a tight trading range – here’s the weekly hart putting this into perspective:

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Australian Stocks

Healthcare stocks were the winner today, but industrials were hit hard, down nearly 1 percent. From the ASX8 (the top four miners and top four banks), the winner today was Woodside (WPL) which looks like bouncing off support:

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As for the bourse itself, heres the daily chart – the market remains on trend from its late June lows, although a retracement to support at 4400 in the next couple of weeks would be healthy. Maybe what looks like poorer Q3 earnings from the US could deliver here?

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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