by Chris Becker
Japanese stocks took the lead in Asia today as a better than expected final manufacturing print domestically helped buoy the bullishness as Yen interestingly sold off against the USD on the good news. Only the Chinese satellite bourses – the ASX200 and Hang Seng – had scratch days as the Aussie dollar tried to make new post Xmas high.
The Shanghai Composite is up almost 0.7% to 3155 points, building on a consoldiation around its previous support level at 3140 points as more news of Yuan tightness filters through, namely higher interest rates. The Hang Seng is off though, down around 0.2% and hovering just above its previous support and now basic resistance, still in a swing long play:
Stocks in Japan did really well, with the Nikkei up over 2.5% to almost reach my target of 20000 as Yen weakens against against USD. The USDJPY pair is pushing back up to its previous high above the 118 handle, and could push through hourly ATR resistance tonight with momentum behind it:
S&P Futures are slowly building going into the London open, as volume picks up to more normal levels, an hourly rising wedge pattern is building here, so watch the upper trendline for a breakout:
After a stellar start to the year, the ASX is having a day off, up only a handful of points to 5733 on consolidation and lack of economic data.
The Aussie dollar is pushing higher, trying to get through its previous high at 72.50 against USD. There’s resistance near this level but momentum is behind the Pacific Peso going into the London session:
The data calendar tonight includes EZ wide CPI print following the German one last night, while we also get the release of the latest Fed minutes.