by Chris Becker
Asian markets start the week generally positively, as Chinese bourses were closed, most Asian stock markets closed higher lead by a stronger USD but dragged by lower commodity prices with oil down and gold flat.
Chinese stocks were closed on the mainland, but the Hang Seng Index remained in trade closing up 0.5% higher but not able to make a new daily high here at 24232 points. Price needs to get back to the high moving average to re-engage this long trend that is slipping on the daily chart:
Japanese stocks did marginally well, as Yen was stable throughout the Asian session vs USD, but closed before the Yen sold off sharply before the London open. The Nikkei closed up 0.4% higher but is still just under 19000 points, holding onto its key support level. The USDJPY pair stabilised at the 111.30 level before shooting out in the last hour or so up through 111.50 in an unexpected breakout. This might have short legs as the weight is against Yen sellers on the longer term charts:
S&P futures are slowly tilting up to the Friday highs again, as US stocks attempt another breakout to make good the “buy the dip” meme. I’m watching the 2368 resistance level closely here on the upside:
The ASX200 put in a scratch session after a solid week previously, closing up only 0.1% to 5872 points. Financials were solid again (save Macquarie) all putting in 0.5% gains but it was the big commodity hitters RIO and BHP that dragged the bourse back to reality.
The Aussie dollar just can’t take a trick and was sold off almost immediately on the open, falling below its daily uptrend line and down to the 76 handle proper against USD. This seems to be some pre-positioning for tomorrows RBA meeting, but I’m positioned more for surprises:
The data calendar starts the week with the US March ISM manufacturing print tonight and a few Fed member speeches to watch out for later in the morning.