Macro Afternoon

Advertisement

by Chris Becker

Its been a fairly unexciting session in Asia today following the mixed but still positive lead from Wall Street overnight. Most Asian share markets finished in the green, but only just as most traders and algos steer into the financial conferences tonight in London, inching and dicing on each word said by the central banker cabal on display.

In mainland China the Shanghai Composite is up slightly, about 5 points or barely 0.2% to 3189 points, where its holding above local resistance at the 3150 point level. The Hong Kong based Hang Seng Index went the other way, down a few points to remain at 25843 points, still above ATR support but again unable to get above the 26000 resistance level again:

With the Yen weakening slightly at the start of the session, Japanese stocks improved somewhat with the Nikkei 225 closing 0.4% higher to build above previous resistance at 20,000 points. The USDJPY pair however ran out of puff after hitting the 112 handle and is coming back as I expected, but should find support at the 111.30 level:

Advertisement

S&P futures are dropping going into the London open after the wild ride last night:

Advertisement

The ASX200 just cannot get any traction at the moment with a poor start to the week continuing here, slumping at the open but recovering to finish a few points down to 5714 points. As I said yesterday, price better get moving soon as the market is 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 has been more successful, finally above to breakout above the 75.70 level, exceeding its Friday session high and hitting the 76 handle and clearing ATR resistance. The next target is clear weekly resistance at the 76.40 level:

Advertisement

The data calendar tonight includes another round of talks to watch out for, with BOE Governor Carney having a chat with Janet Yellen as well, but more importantly its the US consumer confidence and house price print for June.