Macro Afternoon

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by Chris Becker

What a way to start the week with the French election over the weekend causing risk markets to jump higher on the Monday morning gap and hold on to most of the gains through the Asian session. It will be a busy week with the BOJ and ECB meeting later in the week, a big slew of earnings reports from the US and a possible new big tax plan from the Trump administration at the same time. Australian markets will be closed tomorrow for ANZAC Day.

In China, the Shanghai Composite sold off very fast, falling 1.4% going into the close to 3124 points, almost taking out the next level of crucial support at 3100. The Hong Kong based Hang Seng is doing better, up 0.45% to be just above 24000 points as it holds just above the trailing ATR support zone at 23700:

The Nikkei is having a solid day, up 1.4% to 18875 points as the Yen drops significantly against USD. The USDJPY pair gapped open on the dread Monday morning open, flinging itself above the 110 handle and almost up to my Friday target of 110.7 in one fell swoop. Can this overshoot be sustained tonight however?

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S&P futures are very positive on this new risk on trend:

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The ASX200 is liking the news too, closing up 0.3% to 5871 points, with broad gains with only the iron ore trinity bringing the party down a little.

The Aussie dollar zoomed higher onthe morning gap, almost up to the 76 handle before tapering to a more sustainable 75.60 level. This takes it back to but not over ATR rolling resistance so I’m watching the high moving average that needs to be respected tonight:

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