Macro Afternoon

by Chris Becker

Its a bright start to the week with Japanese stocks leading the way across Asia as safe haven buyers retreated away from Yen and filled in to commodity proxies like the Aussie and Kiwi.

In mainland China the Shanghai Composite is up over 0.5% going into the close at 3137 points, still clinging above key support at the 3100 point level. The Hong Kong based Hang Seng Index is also doing it well, up 1% to 25882 points, bouncing off ATR support. This is a great start and I’m watching the downtrend in daily momentum to possibly reverse here to retest the 26000 resistance level:

Japanese stocks have had a good start to the week, with the Nikkei 225 closing over half a percent to pip just above 20,000 points which bodes well for further moves. The USDJPY pair is hovering just above the 111 handle, barely lifting to start the week which is bereft of macro events or economic releases. The next target remains the former high at 111.70 or so:

S&P futures are up slightly as traders maintain the cautious mood:

The ASX200 starts the week with a bang, closing just above 5800 points or 0.5% higher with broad gains across all sectors. Financials lead the way – no surprise – as deluded bulls listened to Philip Lowe’s rousing speech of Australian awesomeness and “strong growth all the way”.

The Aussie dollar is remaining steady here above the 76 handle against USD with a possible resistance forming at the 76.30 level overhead. This level will likely to be tested in coming days, so I’m also watching the low moving average at the 76 handle proper for a possible mean reversion to the uptrend line:

The data calendar starts the week very slowly with a couple of Federal Reserve speeches but not much else going on.

Comments

  1. Moody’s cut the Big 4s long term credit ratings by a notch – now Aa3 (equivalent to AA-).