By Chris Becker
Asian markets fell, following Wall Street last night with the ASX200 falling almost 1% as a higher than expected domestic CPI print put pause to more possible rate cuts. I’ll take a closer look at the bottom of the post including technical analysis of the bourse.
The Nikkei 225 had a similar down day, as the currency way between the Yen and USD continued, the Hang Seng and Shanghai Composite markets basically unmoved after absorbing the better than expected flash PMO result.
The Aussie (AUD/USD) had a strong uptick on the CPI result but has basically been unchanged in the last 24 hours, hovering around 1.03 – but look at the series of lower highs over the last couple of months, and particularly just recently:
The Euro fell again, after having hit resistance last week it continues to range trade as does the US Dollar Index (DXY):
Gold (USD) had a rough session, continuing its short term downtrend which looks like turning into a proper rollover on the daily chart at least.
Australian Stocks
No winners at all today – everything was sold off, with staples least effected and energies the worst. For the ASX8 (the top four miners and banks), CBA was the best of the bunch, moving nowhere, while Newcrest (NCM) got hammered on the poor gold price, where it has decisively broken the $27 support level:
As for the index itself, the KC Signal (a signal I developed to try to find turning points in overbought and oversold markets) that was triggered late last week continues to work, but we are really looking for a break of the uptrend line and the April high before getting the short shorts out to play:
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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.
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