Macro Afternoon

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.


  1. It is just a matter of how much sub-prime credit can be crammed into people before it is regurgitated. Education :

    Cars :

    4% mortgages seem to be the limit everywhere now

    That shale oil and gas is what has to be kept going…. no matter how much money they are losing.

  2. kiwikarynMEMBER

    Micro cap stocks had a huge day today – animal spirits returning to the market maybe?

  3. Johannes Kepler

    Turnbull and Brandis have gone completely FULLY RETARDED and decided that

    Despite calling the laws of mathematics ‘commendable’, the prime minister of Australia told ZDNet the only law that applies in Australia is the law of Australia

    Ya farken what mate ?

    And captain braindead (brandis) who doesn’t know what meta data is chipped in with this astonishing brain fart

    “Last Wednesday, I met with the chief cryptographer at GCHQ … and he assured me this was feasible,” he said.

    I literally am lost for words at how deeply moronic these two tarded monkeys are – I am just beyond speechless and how feckless they are relative to this issue – I have no words.

    Some may be wondering just HOW complex an issue is deciphering encryption, just how difficult – so here is a video posted recently which eloquently describes it – in short – it can never be done.


    Housing boom stupidity ‘about to bite’ … Deloitte Access Economics Report … The Australian
    … google search title if blocked …

    Home-building activity will shrink further as “gravity catches up with stupidity” in housing ¬markets, according to the Del¬oitte Access Economics’ quarterly business outlook, released today.

    The group has joined the ¬chorus of warnings about the dangers facing the residential property market, which is coming under increasing pressure as lenders clamp down on overseas and highly leveraged local borrowers.

    The report characterised the NSW and Victorian economies as having “clay feet” and said the house price boom had “borrowed growth from the future”. …

    … concluding …

    … UBS economists George Tharenou and Scott Haslem said yesterday that a housing correction was unfolding but they still did not see a crash. House price growth had likely already peaked and there was “moderation ahead” as the market digested ¬record new supply, poor affordability and rising mortgage rates.

    Housing crisis: Stockland CEO calls for policy changes … The Australian
    … google search title if blocked …

    There is a “once-in-a-generation opportunity to reset the nation” if the raft of new housing-related policies are enacted by federal, state and local governments and harnessed to the infrastructure spending already under way in some states.

    Mark Steinert, chief executive of Stockland, the country’s largest residential developer, said that if all the initiatives came into play it could unlock tens of billions of dollars in potential savings that could be channelled into housing affordability.

    “The federal government’s policy changes, the attitudes the state governments are displaying, holding local government accountable around (housing) supply targets, infrastructure building around heavy rail and the focus on building new hospitals and schools — this is a game-changer,” Mr Steinert told The Australian. … read more via hyperlink above …

    Housing market sentiment falls in every state: NAB survey – ABC News (Australian Broadcasting Corporation)