By Chris Becker
Asia had a fairly good, if mixed day today on USD weakness and a generally better mood helped by Chinese markets rebounding from their lows. The ASX200 put on 0.4% to 4520 points. Check out a full roundup by sector including some the top 8 stocks and some technical analysis below.
The Nikkei 225 had a scratch day, as did the Yen which remains up in the air:
I may have got this right after all – the Shanghai Comp is up 3% currently after some loosening of bank rules and an oversold condition – can it continue?
The Aussie dollar has gained after the rate cut and is in a rising wedge short term pattern, trying to get to 1.06 against the USD – the bias here is still bullish sideways. Will shorting the AUD be a Widowmaker trade too (local traders call it a Clifford) or has today’s GDP data sealed the Aussie’s fate?
The US Dollar Index and Gold (USD) are continuing to act weird, still falling together, although there was a slight uptick in the latter in the Asian session today – after falling through support at $1700USD per ounce last night. Wish I was up last night to trade gold, one of my faves as an intraday proposition, very volatile coming into the US session after London:
Australian Stocks
The race for yield continues with Telstra and CBA both hitting new highs today, brushing aside their overbought status:
The best performing ASX8 (the top four miners and banks) was Rio Tinto (RIO) as materials stocks reacted to Chinese equity markets bouncing higher:
The market really wants to revisit the previous high but with financials way overbought, its up to materials and Chinese markets to get the bourse back above the KC Signal level and then on its way to 5000? Oh, there’s that little thing called the fiscal cliff…but that should hopefully be resolved!
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. 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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