Macro Afternoon

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by Chris Becker

Shares in Asia have reacted positively to Friday night’s NFP print, absorbing the weekend news with aplomb, as the USD retreated against most of the majors across the region. Commodity prices remain under pressure with WTI oil heading to the $48USD per barrel level and gold barely maintaining above support at $1200USD per ounce.

The Shanghai Composite is out of the gates swiftly to start the week, up 0.6% going into the close, now at 3232 point but still remaining just above local support at 3200 level. The Hang Seng Index is doing a lot better, up over 1% to 23843, only just below the 24000 points resistance level as it bounces above the daily ATR support level. Note how daily momentum has remained positive in this little dip so I’m watching for a follow through above the high moving average tomorrow:

HSI.fsDaily

Japanese stock traders are positive, but treading water as Yen strengthened a little bit against USD after a big push on Friday night. The Nikkei is only up 0.15% to be at 19,628 points. As I expected on Friday, there’s been a pullback in the USDJPY pair as the momentum was way overdone but we should find support here at ATR support just above the 114 handle:

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USDJPYH4

S&P futures are steady remaining at their closing Friday price:

S&P.fsH4
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The ASX200 is the laggard in Asia, starting the week with a mixed session on low volume, closing down 0.3% to 5757 points, still shy of key resistance at 5800 points. Financial stocks were the drag today as commodity players were mixed as Newcrest zoomed 4% higher but Woodside off nearly 2% on the lower oil price.

The Aussie dollar is finding an absence of sellers in the Asian session so far, bouncing back from the Friday selloff to be just below ATR resistance at 75.70 going into the London open. It needs to clear this level which may be a tough ask with the commodity price squeeze:

AUDUSDH4
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The data calendar starts the week slowly with a speech by Mario Draghi later tonight and not much on the US agenda.