by Chris Becker
It’s been a mixed day in Asia with short covering and delusion over iron ore in Australia overshadowed by minor falls across the rest of the region.
In mainland China the Shanghai Composite slid on the triple data release with FAI numbers spooking a little, sending the market down 0.7% to 3129 points, still clinging above key support at the 3100 point level. The Hong Kong based Hang Seng Index is putting in a scratch session, closing at 25838 points as its consolidation period continues here:
Japanese stocks were again flat with both major markets falling ever so slightly on a unmoved Yen. The Nikkei 225 putting remains below the 20,000 points level. The USDJPY pair is completely stable stuck between a tightening moving average band here bang on the 110 handle. Tonights CPI print will be crucial for future direction:
S&P futures are down slightly as traders pre-position for a series of macro events tonight:
The ASX200 had another big day, closing nearly 1% higher, finishing at 5826 points. Again there were gains across most sectors with financials leading the way, while energy stocks sold off.
The Aussie dollar is having another little go at breaking out higher, trying to take out last week’s intrasesion high, currently sitting just below 75.50 against the USD. I’m still watching the low moving average at the 75.20 level as a potential short on the downside here if USD strength regains on the CPI print:
The data calendar will focus squarely on the US CPI print for May later tonight, followed by advanced retail sales and another round of DOE inventory reports, as the FOMC heads into its two day meeting.