by Chris Becker
Asian markets are somewhat mixed after the positive US session has not translated into confidence across the region. Reading the FOMC minutes from last night maybe causing the confusion, coupled with tensions on the Korean peninsula, while commodity prices moderate.
In mainland China the Shanghai Composite is only up slightly, around 0.2% to 3211 points holding above previous resistance at 3200 points. The Hong Kong based Hang Seng Index is down an equal amount after first gapping up and trying to claw back after its previous slump below the daily ATR line:
Japanese stocks reacted negatively to last nights move higher by Yen and the continued North Korean tensions, with the Nikkei 225 closing down 0.4% to be back below resistance at 20,000 points, unable to hold on to its previous gains. The USDJPY pair is again making another attempt at a new high after failing overnight, bouncing off the low moving average to be just above the 113 handle:
S&P futures are steady, but the symmetrical triangle here on the four hourly chart is pointing to a crunch moment soon: :
The ASX200 had a flat session after its volatility, closing only five points down to 5758 points. Once again, price seems stuck around or on the 200 day moving average, as the holding pattern going into this weeks external economic data catalysts continues.
The Aussie dollar has been unable to make a comeback after its recent slump, still finding the 76 handle against USD too high a level to breach. Coming into the end of the week, support at 75.70 may not hold here if US data is too strong:
The data calendar will focus on the non-manufacturing ISM print later tonight in the US interspersed with some ECB wonkey talks.