Macro Afternoon

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by Chris Becker

Asian stocks are starting the week with a bang as two major macro events over the weekend – the US NFP and the French elections – are absorbed with gusto from risk managers. The Euro has gapped higher on the open but come back as expected, while Yen and Aussie dollar were largely unaffected.

In China however the news isn’t good with the Shanghai Composite is continuing its selloff, currently down half a percent to 3048, still well below crucial support at 3100. The Hang Seng is doing the exact opposite, up 0.5% but the ominous double top pattern on the daily chart remains intact. I’d watch the lower moving average at the 24200 line carefully:

Japanese stocks came back from their holiday with a bang as the Nikkei jumped over 2% to almost breach the 20,000 point line. Domestic stocks were helped by a steady Yen, with the USDJPY pair remaining above the 112 handle and within its trend channel:

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S&P futures are steady after the big move higher on Friday night on the NFP print:

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The ASX200 close 0.6% higher to finish at 5870 points, enjoying the wave of positive sentiment. Both financials and miners pushed the bourse higher while ANZ went ex-dividend, the rest of Megabank closed higher, with oil stocks moving higher in response to the Friday night bounce.

The Aussie dollar is stabilising, having not moved significantly higher on the NFP, a small ascending triangle developing on the four hour chart, where I’d watch the 74.30 level for signs of a breakout:

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The data calendar starts the week relatively quietly, with reaction to the French election and the punditry thereof to be watched closely on both sides of the Atlantic.