Macro Afternoon

by Chris Becker

A generally positive day across Asia, reacting to the good lead from US stocks overnight with the Nikkei up 0.7% even as Yen maintains its strength against USD. The USDJPY remains stuck at the 102 handle and on its downtrend, which is a major headwind for the Nikkei, but is firming here for a possible upswing. Watch tonights US CPI with caution here for a breakout!

USDJPYH1

Chinese stocks have another day off today due to a holiday, which is probably a good thing as the Shanghai Composite is poised on terminal support, ready to breakdown. The return next week will be volatile.

The ASX200 has soared today, up 1% to just below 5300 points as bank stocks lead the charge.

Turning to commodities, WTI oil is possibly building for a breakout here after bouncing off strong support at the $43USD per barrel level. Watch for the high moving average at $44.50 for a breakout as momentum crosses over:

WTI.fsH4

But gold is looking tenuous with the hourly chart of the shiny stuff still showing a downtrend after last nights strong volatility. I’m looking at a slight chance of an upswing here at the $1317USD per ounce level, but the bulls are losing the battle here. This will be a key security to watch for tonights US CPI print:

XAUUSDH1

Meanwhile in currencies, the Aussie dollar reacted on the downside to the weak jobs data this morning, finally stabilising at 74.60 against the USD and still shuffling sideways. As risk continues to flick the sell signal, the Pacific Peso proxy will find less and less support here. I’m watching the intrasession low at 74.50 to break tonight:

AUDUSDH1

 

The data calendar finishes the week with the August CPI print for the US, an important juncture at which to re-assess last minute ideas on where the Fed will move next week at the FOMC meeting.

Comments

    • They’re smashing all the soft targets and leaving the real money spinners like CGT, NG,etc. (the MB list just goes on and on, you know what it is). Great work from both our pathetic political parties.

    • “Welfare recipients who rack up a debt will also be charged 9 per cent interest on this if they don’t agree to a repayment arrangement.”

      U. S. U. R. Y

      While the RBA cuts to 1%

      Fucking gangster criminals

  1. Looks like central banks are listening to the bank’s complaints and are letting the long/short interest spreads blow out a little. The US seems to be more interested in the bill market for a while. Banks have to make a living.

    One thing is for sure, US dollars will get more expensive. The ticket clippers are waiting with open arms for those who have to partake in this trade.
    http://www.advisorperspectives.com/commentaries/2016/09/15/the-nitty-gritty-of-currency-hedged-bonds

    • TailorTrashMEMBER

      Love the photo ….
      5 dick brains ( paid ? )
      I coffee in a proper cup
      1 coffee in a takeaway cup ( cheaper 2 km away )
      I glass of water ……( too geared up to afford coffee )
      1 dog ………..(a hired prop )

      Now that’s how I’d like to spend my Friday nights ……!!!

  2. TailorTrashMEMBER

    I would welcome the miners to Australia ……they would do the great things for this country just as the early Chinese diggers did ……………Now ,the mine owners who might already own many of our houses with the proceeds of the rip off ………..well ?……..I will leave their treatment to you fellow readers ………………..http://www.aljazeera.com/programmes/101east/2016/09/china-economy-160913081105227.html

    Ps …..wonder what Bill Shorten thinks about the miners ? ………wonder what Malcolm thinks about anything ? …………….as the money pours in to our great real estate miracle ….Hang your head in shame straya ! Shame shame shame !
    .

  3. TailorTrashMEMBER

    ……..and chanel seven is tonight advertising that you too can get into the property market for as little as $100 …………now, remind me …..what was it Joseph Kennedy said about shoeshine boys ? ……….

  4. “But gold is looking tenuous with the hourly chart of the shiny stuff still showing a downtrend after last nights strong volatility. I’m looking at a slight chance of an upswing here at the $1317USD per ounce level, but the bulls are losing the battle here.”

    But silver has been printing higher lows since it hit the long term support of 18.5 last month. I wonder if your feelings on this matter are clear, Lord Becker.