By Chris Becker
The risk off mood continued in Asia today, although Chinese markets are buoyed somewhat in late trade on the solid (by design?) fixed asset investment and industrial production figures for October. The ASX200 lost half a percent today, mainly dragged down by houses and holes stocks – see a full roundup below.
The Nikkei 225 is off slightly more as the Yen appreciates across the crosses – aren’t high currencies a bitch? The usually volatile Hang Seng is having a normal day after losing 2% yesterday, while the Shanghai Composite is sneaking into the green on the good October data prints.
The Aussie is up slightly against the USD and the Yen surprisingly, as the USD and Euro trade places with a slew of CPI and industrial production Tier 1 data getting ready to be released tonight.
Gold (USD) is surging today and looks like finishing the week strongly if it can hold tonight on the US markets, as it seems to have diverged from the US dollar:
Some big falls amongst the financials today – but don’t get too excited – first it was ANZ now its NAB and WBC turn to go ex-dividend today, hence the big falls – some big yields there.
For the index, the weekly chart below shows a trendline break of the recent rally, but not strong support at 4440 points. There is a “trap zone” between that and 4400 points proper forming with the last 3 weeks taking prices very close:
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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