by Chris Becker
Asia markets reacted in Yin Yang fashion today on the Chinese CPI print, with domestic Japanese and off shore Chinese stocks doing well, while Aussie stocks went nowhere. The Australia dollar at first lurched higher on the print against the USD, but is stepping in line as other majors retreat against the King of Kurrencies. Gold and oil are stable going into the London fix.
The Shanghai Composite slipped 0.3% to 3051 points in contrast with the Hang Seng, up 0.6% and stalling its current selloff, clawing its way back above the 23000 point support level. In Japan, the Nikkei rallied 0.4% as USDJPY came back from its overnight brief selloff. The bourse is trying to get back above 17000 points again. Its all about changing levels of support and resistance within Asian markets, a sign of latent volatility that is building.
Yen has weakened with the Chinese CPI print with USDJPY bouncing off its trendline up to the 104 handle. I’m watching the intraweek high here tonight to be breached:
For the ASX200, Friday was a dud with a scratch session. The market closed at 5434 points, going nowhere fast as the Aussie dollar coils higher temporarily.
Tonight the S&P500 will be the most important risk market to watch, with the highly anticipated advanced retail sales print to weigh if it underperforms. The breakdown of the triangle pattern on the daily chart is almost confirmed with a close below the 2103 level the area to watch:
The Aussie dollar tried to rally past its downtrend and hit the 76 handle briefly today but is coming back in anticipation of the London session. I’m watching ATR support at the 75.60 level to be tested in the coming hours:
The data calendar runs out the week with one big release, US advanced retail sales.
To end the week out, be glad that its less than a month til the US presidential election, and just over 60 days to the new Star Wars movie, Rogue One. Here’s the newest trailer, there’s still hope!