Macro Afternoon

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by Chris Becker

All engines full in Asia as the risk-on accelerator is pushed as markets contend that interest rates will begin to normalise sooner rather than later. All stock markets closed higher while the usual safe haven of Yen sold off and every man and his dog bought Aussie as speculation (wild speculation!) mounts that the RBA might lift at its next meeting.

In mainland China the Shanghai Composite closed 0.5% higher to 3187 points, taking back its previous losses and where its just holding above local resistance at the 3150 point level. The Hong Kong based Hang Seng Index is doing even better, up nearly 1% to 25938 points, still nicely buoyant above ATR support but unable to get above the 26000 resistance level again:

Japanese stocks are doing well coming into tomorrows economic data dump with the Nikkei 225 closing 0.5% higher to 20220 points, jumping back above previous resistance at 20,000 points. The USDJPY pair is slowing down on its recent breakout but is still strong here above the 112 handle and on target for 114 or so:

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S&P futures are steady, up about 0.2% going into the London open where the S&P500 really needs to make a new daily high to get this move to stick:

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The ASX200 was the best again today, up over 1.1% to be above 5800 points. The 200 day moving average line is again providing solid support but can it get traction to build up to the previous bull market high at 6000.

The Aussie dollar is soaring ever higher because why not? Against the USD its up to 76.60 and the door is wide open up to the March high at 77.20 or so. Price is well above the high moving average with momentum nearly off the chart as well, so normally we would expect a retracement here soon:

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The data calendar tonight includes a possible clanger for Euro traders with the German CPI print for June while in the US its some preliminary personal consumption expenditure numbers.