by Chris Becker
The poor lead from US stocks overnight has turned into a lacklustre end to the trading week here in Asia. All stock markets are off nearly 1% or so with the USD weakening very slightly against Yen but still strong against the other majors.
The Shanghai Composite is off another 0.5%, doubling down on yesterdays losses to be at 3213 points and just above local support at 3200. The Hang Seng Index is also off, down 0.6% to 23569, remaining below the 24000 points level resistance level. As I’ve been saying for awhile, the daily chart suggested a small top was is and now the low daily moving average and the daily trendline has been breached, the next level to watch before a reversal is daily ATR support at 23500 points proper:
Japanese stocks had the tailwind of a weaker Yen going up against the headwind of the poor lead from overnight stocks, and as the Yen gained slightly during todays trading, the headwinds won. The Nikkei closed down 0.7% to finish at 19,425 points. The hourly chart for USDJPY how the 114.50 level was too far and too fast for USD which has retraced slightly to just above the 114 handle and ATR rolling support, which will be watched carefully tonight:
S&P futures have also fallen further in Asia suggesting a modest open tonight:
The ASX200 fell immediately at the open and stayed there throughout the day, closing the week at 5729 points and down 0.8% for the day. Banks and resources stocks retreated in unison and with the broader market still unable to climb above the 5800 point resistance zone.
The Aussie dollar had no chance of regaining its losses from last night and is sliding again going into the London open, currently just above the 75.50 and not much hope here:
The data calendar concludes the week with US non-manufacturing ISM print followed by a slew of speeches by Fed officials, culminating in Janet Yellens economic outlook speech in Chicago that will be closely followed.