by Chris Becker
Outside of Japan its been a relatively quiet and dour session in Asia with Chinese and Australian stocks barely moving while currency markets absorbed a stronger USD and Euro going into tonights unemployment print. Commodities are steady as well although the gold bugs are not finding much support as the USD resurges.
In China, the Shanghai Composite closed down 0.35% lower to 3142 points, barely holding above the level of crucial support at 3100. The Hong Kong based Hang Seng however is up slightly, closing a scant 0.1% higher in a wide ranging day but still holding above its previous gains to be back around 24500 points, and still looking positive here:
Japanese stocks are the standout, all due to a much weaker domestic currency. The Nikkei finished 0.7% higher to be at 19445 points holding well above its recent gains on the daily chart. The USDJPY pair has broken out as I expected above the four hourly pennant pattern and through the 112 handle in a move that is likely to have another push before a small pullback on profit taking:
S&P futures are buoyant but not breaking out before the open as all eyes remain on corporate earnings tonight:
The ASX200 finished with a scratch session down only 6 points to be at 5950 points, still trying to hold above its bullish trendline on the daily chart, possibly finding some exhaustion from buyers but more likely on trying to read the RBA’s hold message
The Aussie dollar was bid up through the 75.40 level heading up to the interest rate meeting before selling off going into the London open swiftly, coming right up to the 75 handle proper on the daily chart. This is setting up for a potential selloff so I’m positioned here just in case:
The data calendar tonight is relatively quiet with Eurozone unemployment for March.