Macro Afternoon

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by Chris Becker

A new financial year begins in Asia with only the Chinese and Australian satellite markets finishing in the red as Japanese stocks react to the weekend elections in Japan. Some of this can be blamed on light volume due to the short week in US trading, which takes Tuesday off.

In mainland China the Shanghai Composite barely closed a few points higher to 3194 points, as traders wait for a breakout above previous resistance at 3200 points. The Hong Kong based Hang Seng Index is up slightly to 25800 points even, still hovering above ATR support the 26000 resistance level remains intact again:

Japanese stocks did well intrasession, but faded into the close even on a weakening Yen. The Nikkei 225 closed approx. 0.15% higher to be just above 20,000 points. The USDJPY pair is slowing melting higher as it starts the week, currently at 112.60 and on track to retest the 113 handle this week:

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S&P futures are steady, but can be discounted somewhat due to lower volume:

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The ASX200 was doing okay at the open with a small slump, recovering after lunch but then selling off all afternoon to finish 0.6% lower to 5684 points. Here we go again as it breaches the closely watched 200 day moving average, with the market on edge.

The Aussie dollar has started the week a little bit more subdued, and finishing the Asian session in the midpoint of its moving average band. I’m watching the low here again on an expected retracement for a short term opportunitiy down to 76.30 or so:

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The data calendar starts the week with two major events to watch overnight the first being BOE Governor Mark Carney’s address on financial stability then the US ISM print for June.