by Chris Becker
Markets in Asia are mixed to say the least with Chinese bourses surging and the rest struggling as Yen and Aussie dollar lift higher against a floundering USD. Australian 10 year bond yields are falling again while the oil price slipped in weak Asian trade.
The Shanghai Composite was up before the long lunch break but has come back a few points lower, currently at 3232 points, unable to build momentum above local support at 3200 level following Friday’s tepid turnout. The Hang Seng Index is up 0.6% to 24460 points, holding above the 24000 points resistance level. A new daily high on the daily chart after last week’s late breakthrough should sustain it here:
Japanese stock markets are closed for a holiday with light trading in futures indicating a drop on the return to tomorrow. Yen is also thinly going on with a slight fall in the USDJPY pair, currently oversold at 112.50 but not making any suggestions of a rebound soon:
S&P futures are down nearly 0.3% as a lack of confidence grips US stocks following last weeks Fed rate rise. The four hourly chart is not looking good here but I’m watching tentative support to hold at the ATR rolling level around 2370 points tonight on the open:
The ASX200 closed down 0.4% to 5778 points, selling off throughout the session in a very cautious move across all sectors. Resistance at 5800 points is the key are to watch on the upside here.
The Aussie dollar however is doubling down as the yield spread widens, building above the 77 handle against USD, currently at 72.30 with the hourly chart suggesting more to follow on the London open:
The data calendar starts the week very slowly with no major releases of note overnight.