Macro Afternoon

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by Chris Becker

Asian markets were generally positive today after last nights solid lead from Wall Street. Oil was the only commodity to put on any meaningful gains while the USD continued to gain strength against the majors.

The Shanghai Composite is putting in a scratch session coming back after the long lunch break dead still at 3255 points, still unable to climb significantly above local support at the 3200 level. The Hang Seng Index is not doing much better, up only 0.2% to 24389 points trying to make a new daily high. Price is remaining around the high moving average so the bulls are starting to get the upper hand:

Japanese stocks are treading water also, mainly on a lot of ex-dividend trading, but also on a steady Yen which has moderated its losses overnight against USD. The Nikkei closed down only 0.1% lower to remain above 19200 points, and its own key support level. Yen sold off immediately on the Tokyo open but came back a bit in afternoon trade, currently the USDJPY is just above the 111 handle poised between the high and low moving averages, but looking well overextended:

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S&P futures are starting to regain here, with the cash market getting past last weeks intrasession highs above 2350 points so we should see some more traction tonight:

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The ASX200 again zoomed out of the gates, closing up nearly 1% higher as its banks to the rescue again! The market closed at 5873 points and seems set to get back up to 6000 points faster than a Brisbane apartment firesale.

The Aussie dollar again tried to rally on the Sydney open, but again found stiff resistance today, remaining in the low 76s against USD. Rolling resistance above 76.60 is the target to watch overnight:

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The data calendar is light on officially tonight, with DOE crude oil inventories and some ECB speeches.