by Chris Becker
Risk has taken a breather in Asia today, with the USD reversing its rampant bullishness – temporarily – as a lack of a positive lead from Friday and over the weekend, with a lack of resolution from OPEC on oil production freezes not helping either.
The Shanghai Composite is up 0.5% to 3279 points, making good on its bear market rally, with the Hang Seng is doing better, up nearly 1% and trying to make some ground after breaking up from its downtrend previously, now at 22905 points with the daily chart showing the caution around the 23000 point level:
In Japan, share markets have retreated a little as the Yen firms against USD. The Nikkei fell 0.3% to be at 18322 points, still above support at 18000 while the USDJPY dropped through the 112 handle. Support on the four hourly chart is broken here, with a pullback to the next line of support at 109 not unexpected as no catalysts are forthcoming:
S&P Futures are steady, taking back the ebullience of Friday night for a staid open on Cyber Monday:
The ASX200 is taking back all its good gains from Friday as miners selloff on the Yuan tighten and USD reversal. The local market fell 0.8% to 5464 points, mainly pushed by BHP, Woodside and Oilsearch dropping 2-3% each on the slumping oil price reaction from Friday.
The Aussie dollar is pushing higher on the USD reversal, almost hitting the 75 handle in the Asian session. The four hourly trendline remains intact but this is slightly overbought so a pullback to that line is to be expected:
Gold is seeing a lot of short covering here in Asia, with a breakout above hourly resistance to $1193USD per ounce, but can it stick and push through to that big resistance overhead at $1200:
The data calendar starts the week with a whimper with a slew of ECB wonks having a chat in Brussels, including Super Mario at the European Parliament. That might move Euro – probably not. Nothing going on US wise either.