by Chris Becker
Its a case of run home to momma as risk markets reverse coming into the most important economic print of the month with US employment the key figure to watch tonight. In Asia its a case of sell commodities and bank the rest with iron ore, coking coal and oil all breaking down, dragging equities with them while interestingly bond yields are rising in the face of the rout.
In China, the Shanghai Composite is being dragged down significantly by the commodity rout, off nearly 1% going into the close and just sitting under crucial support at 3100. The Hang Seng is off slightly more, down 1.25%, reversing momentum and setting up an ominous double top pattern on the daily chart:
The Nikkei was closed for another holiday today – a good week to take off! The USDJPY pair is starting to reverse on the risk off trade as everyone dives for Yen on the safe haven bid. By crossing ATR support its heading into dangerous territory where the next level is the 111 handle:
S&P futures are slowly falling in the Asian session, but given the last week of going nowhere this could continue tonight. Or we might see a break below ATR support here at 2377:
The ASX200 is off 0.8% going into the close to 5837 points, remaining well below the 5900 level and setting up for a nice corrective phase here. It was a case of losses across most sectors although obviously commodity and gold stocks were hits the hardest with BHP off nearly 3% and Newcrest down 3% alongside Fortescue and RIO.
The Aussie dollar is taking a shellacking, making a new daily low as it heads below the 74 handle. This is ominous going into tonights NFP where the next level of support hovers around the 72 cent mark – this has been a big reversal since the huuge reflation post Xmas:
The data calendar tonight will focus solely on the monthly US employment report, AKA, the NFP!