by Chris Becker
Markets in Asia are maintaining the wait and see approach as a big night of events in Europe and the US, led by the FOMC meeting where the Fed is expected to hike rates. Bond markets remain even quieter as expectations of increased volatility post the Fed meeting are rising.
The Shanghai Composite is slipping on the other side of the long lunch break, down a couple points as it heads into the close, now at 3235 points and still above local support at 3200 level. The Hang Seng Index remains unchanged at at 23822 only just below the 24000 points resistance level as it holds 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:
Japanese stocks are selling off a bit more, with the Nikkei closing down 14 points to 19,572 points as Yen remains relatively stable. The four hourly chart of the USDJPY pair shows a hesitation to get back above the 115 handle as price just slides along in anticipation:
S&P futures are trying to recover last night lows but this is still a very cautious move:
The ASX200 is standing out today by actually putting on some points, closing up 0.3% to 5779 points, still shy of key resistance at 5800 points but looking better than other bourses in the region. Fortescue jumped nearly 6% higher while heavyweight BHP closed up 1.5% and RIO over 2% in a very late surge in the session.
The Aussie dollar is slowly building and approaching the 76 handle against USD, as the low moving average slowly ticks up on the four hourly chart. I’m positioning for a possible breakout above ATR rolling resistance at 75.80 here, but also ready to switch gears and go short below that low moving average:
The data calendar continues with several BIG things to watch tonight. In Europe, the Dutch election looms over the continent, while in the US its all about the FOMC meeting. But there’s also monthly CPI and advanced retail sales – a big night, staying up late for this one boys and girls…