by Chris Becker
An interesting start to the new year in Asia with most stock markets higher but Japanese markets struggling as the Yen strengthens slightly. The USD is selling off against the majors with gold and silver rallying
The Shanghai Composite is up over 0.7% to 3125 points, bouncing up to its previous support level at 3140 points. The Hang Seng is up about the same building on its long swing pattern, up through previous resistance at 22000 points:
Stocks are stagnant in Japan, with the Nikkei treading water and TOPIX going backwards as Yen firms slightly against USD. The USDJPY pair is pushing down to ATR support and its hourly trendline with a potential top forming at 117.70 but momentum remains positive for now:
S&P Futures are rebounding going into the London open, as volume starts to build going into the first full session of the year – not much to read into this as yet:
The ASX200 is having a stellar start to the year, up over 1% to firmly close above 5729 points led by banks and insurers with only gold stocks falling back amid a wide rally.
The Aussie dollar is zooming higher, reversing my idea of a selloff to start the year! Its gone straight through the 72 handle to be at 72.30 versus the AUD. There’s some local resistance near this level soon and price action is decelerating so we could see a reversal in the London session:
The data calendar tonight has a one two punch from Germany, namely December CPI and unemployment prints with an uppercut later on with US ISM Manufacturing.