by Chris Becker
As we head into a more fruitful week in the economic calendar, Asian markets are seeing more risk takers with most stock markets putting in positive sessions and domestic currencies also higher. The oil price is helping here, as are other commodities going into the European open.
In mainland China the Shanghai Composite was is very bullish, up nearly 0.7% going into the close to 3180 points, where it needs to stay above key support at the 3100 point level. The Hong Kong based Hang Seng Index is similarly strong, up 0.5% to start the week well at 25792 points, still above ATR support but again unable to get above the 26000 resistance level
With the Yen remaining firm, Japanese stocks are steady with the Nikkei 225 closing only a few points higher to remain slightly above 20,000 points. The USDJPY pair is hovering around the 111 handle with momentum tapering here without a series of new session highs throughout last week that needs to be breached soon:
S&P futures are slightly higher as the economic calendar starts to heat up:
The ASX200 started the week with a big rally on the open but that has fizzled out to nothing for a scratch close at 5720 points. Price better get moving soon as we are still at the intersection of the weekly uptrend line and the 200 day moving average, which if crossed could see a big selloff.
The Aussie dollar is trying to breakout above the 75.70 level getting back to its Friday sessions high following a swing long breakout after decelerating into a bottom. If price does not break above ATR resistance at the 76 handle, expect a retracement at around 73.80 or so:
The data calendar starts the week with two major events overnight, the first being the ECB Forum with all the heavyweight CB governors in attendance, with US durable goods orders for May thereafter.