by Chris Becker
Another day of traders chewing on fingernails as geo-political concerns outweighed the macro and fundamentals with Japanese stocks selling off as expected while Australian markets were sanguine. Commodities continue to be bid, especially the undollar gold, while oil climbs on the “good” supply situation in the Middle East.
In China, the Shanghai Composite closed down 0.3% to 3276 points as it tries again to beat overhead resistance at 3300 points but is knocked back late in the session. The Hong Kong based Hang Seng swung the other way, up 0.6% taking back of the previous session losses and creating a small pattern of support just above the trailing ATR support zone at 23700:
Japanese stocks were the big casualties today as they slowly go further into dip and possibly correction territory as the Yen was bid against USD once more. The Nikkei closed down over 1% lower remaining below key support at 19000 points. The USDJPY pair has bounced back in the last hour or so, but is still below the 110 handle in what looks like short term positioning before the London open:
S&P futures are starting to move higher even as Treasuries continue to be bid on caution exhaustion. I’m watching a local resistance zone at 2360 points that could come under threat here:
The ASX200 continues to defying the risk averting mood by putting in a scratch session today, remaining at 5933 points. This was despite a slump in Telstra’s stock price, down nearly 8% on moves to break its mobile monopoly, but more than offset by the rising financial sector, with Megabank sub-divisions up nearly one percent.
The Aussie dollar is trying to find a bottom here, scooting just below the 75 handle against USD on the four hourly chart. Its still hovering at a new weekly low and as I watch the high moving average here for a potential breakout, price action is pointing to a full retracement to the previous weekly low at 71.50:
The data calendar tonight includes a speech by Governor Carney of the BOE that will be closely watched given the inflation worries in the old country, while his Canadian brethren sit for their monthly interest rate meeting and in the US its DOE crude oil inventories.