by Chris Becker
A poor Chinese export figure for September is not quite rattling cages across Asia today, although all stock markets are either scratching or in the red as a result, this could be due to the poor lead overnight from the US.
The Shanghai Composite has stopped entirely, stuck at 3058 going into the close, but the Hang Seng is off by more than 1.2% and falling through support on the daily chart at the 23000 point level:
Not a good sign going into tonights risk session!
In Japan, the Nikkei has slipped about 0.3% as USDJPY falters on the Yuan lower fix and exports print. The bourse is well below 17000 points again as the Yen strengthens, now proving a resistance level it can’t breach:
Yen’s weakness has suddenly reversed, possibly confirming a false breakout here, but USDJPY remains on trend on the four hourly chart at least:
For the ASX200, the local market closed nearly 40 points or 0.7% in line with futures, rejecting overhead resistance at 5500 points and now threatening a total breakdown, closing at 5439 points. More on this tomorrow!
The Aussie dollar has fallen below yesterday’s session low, now down to 75.30 and slightly oversold going into the London session, but due for a selloff if The City equates the poor Chinese export figures with a reversion in the “everything Aussie is Awesome” meme:
Although oil does bear watching as it remains on support, with the DOE inventory count tonight looming, there’s an opportunity brewing here for going long gold, which has broken out in the Asian session on the hourly chart at least:
The data calendar tonight includes the final German CPI print result for September, plus US initial jobless claims and the ever important DOE oil inventory report.