by Chris Becker
Green across the board today in Asia with most stock markets up in response to the new record high in US markets overnight. The USD is finding a bid too while the Aussie dollar has a mild selloff due to a lower than expected CPI print.
The Shanghai Composite is currently flat at 3146 points after returning from its long lunch break, still struggling to move higher than its artificial support level at 3100. The Hang Seng was up sharply on the open but sold off in the afternoon, now up 0.2% and remaining stalled on the daily chart after a mild selloff late last week. I’m watching the 23000 point level for a proper breakout to resume the uptrend:
Japanese stocks finally put on some runs after being under pressure with the inversely correlated Yen strengthening recently. The Nikkei closed 1.4% higher as Yen weakened overnight, getting above 19000 point again. The hourly chart for USDJPY shows a small setback in the weakening trend, as the pair came back to 113.50 or so but strong support should see this revisit the 114 handle tonight:
S&P Futures are completely stable given the yuge moves overnight on the broader market. While nominally well overdone, the impetus is there to keep going. Buy construction stocks if Trump announces his inane wall:
The ASX200 had a solid session, gaining 0.4% to 5671 points with big moves in BHP (up 3%)overshadowed by some modest losses in property trusts. The bourse is still stuck here trying to regain momentum after a mild correciton.
The Aussie dollar was sold off on the less than expected CPI print, falling through hourly ATR support to be at 75.40 going into the London open. The tide is starting to slowly move towards the bears here, but the print wasn’t that bad. I’m watching the session lows at 75.30 or so for signs of a followthrough by City traders:
The data calendar is relatively quiet with some minor releases in Europe and the US – watch out for more executive orders!