by Chris Becker
Asian stock markets ended the week strong with rises across the board as the Japanese Yen weakened slightly and Aussie dollar soared to new heights.
In mainland China the Shanghai Composite closed with a scratch session today to remain slightly above previous resistance at 3200 points. The Hong Kong based Hang Seng Index is having a similar pause, up only slightly, but still building after its recent breakout:
Japanese stocks are up slightly with the Nikkei up 0.2% to be at 20,141 points but unable to breach its former high as the Yen proves a little too strong a headwind. The USDJPY pair is maintaining a weak support line here just above the 113 handle, unable to get above the trailing high moving average which could point to another drop, but this will all depend on the CPI print tonight:
S&P futures are steady, slightly building on last nights small run:
The ASX200 jumped out of the gates at the open but profit taking was the order of the day, closing up only 0.25% to 5751 points. This was mainly on the back of the banks, but property developers also surged today.
The Aussie dollar remains well above the 77.20 key resistance level as it accelerates too far away from its high moving average. With momentum readings diverging this is a signal for an imminent retracement, at least below 77.20 – wait for tonights CPI print:
The data calendar ends the week with a bang, namely US CPI and advanced retail sales.