by Chris Becker
Iron ore was the big catalyst in Asia today with a near 7% drop in the session translating to modest losses on Chinese and Australian bourses that were offset by rises in other industrials. The USD remains firm after last nights FOMC meeting with the Aussie dollar still below 75 cents.
In China, the Shanghai Composite closed with a scratch session losing only 2 points to 3132 points, still holding above the level of crucial support at 3100. The Hang Seng reopened today and fell 0.25%, but did not make a new daily low since its recent breakout, although I’m cautious here as momentum has reverted and setting up for a swing short position:
The Nikkei was closed for another holiday today. The USDJPY pair remains elevated after its recent breakout above the four hourly pennant pattern and nearly hitting the 113 handle as a lack of traders keeps the volatility low:
S&P futures are neutral following the FOMC meeting last night, as the sideways consolidation continues:
The ASX200 did not fall as hard as I expected, closing down 0.3% to 5876 points, remaining below the 5900 level. Iron ore miners were mixed with Fortescue off nearly 5% while RIO only lost 2% and BHP actually finishing in the green – barely.
The Aussie dollar remains poised here, possibly reading to breakdown again this time through the 74 handle after last night’s shocker. Price deceleration is almost complete so a risk on mood in commodities in London could see a swing long up to the low moving average at 74.40:
The data calendar tonight will largely focus on US initial jobless claims in the leadup to the NFP print tomorrow night.