Macro Afternoon

By in Australian Dollar, Australian Shares

| 12 comments

by Chris Becker

A slow start to the week in Asia as Japanese markets are closed, negating the effect of a stronger Yen, while Chinese growth numbers came in slightly higher than expected, which should re-fuel the rally on Wall Street and in Europe tonight.

In mainland China the response hasn’t been as expected on stocks, with the Shanghai Composite closing down nearly 1.5% lower to buckle below support at what was previous resistance at 3200 points. The Hong Kong based Hang Seng Index however is up 0.3% making good on its recent breakout and well above 26,000 points:

Japanese stocks are closed today for a holiday, with trade in USDJPY lighter than usual.  The Monday morning gap didn’t present itself though, with a small blip up to the 112.60 level after finding a temporary base on Friday at the 112.30 level. I’m not expecting much upside here with this truncated session:

S&P futures are steady as she goes, but we should see a return to the bullish phase along with new earnings results:

The ASX200 had a flat start to the session, and then sold off going into the Chinese GDP print before recovering for a mild loss on the day, down 0.2% to 5755 .  This was mainly due to a minor selloff in banks as energy and iron ore stocks had a good run.

The Aussie dollar remains well above the 78 handle breached on Friday, but has fallen back some given the lack of trading in Asia today, where it could be tested as the City opens tonight. The key level to watch here is that long held resistance line at 77.20 in red:

The data calendar starts with a quiet one overnight, namely the final CPI EZ wide print for June, and then NZ CPI in the wee hours of the morning tomorrow.

Comments

  1. GeordieMEMBER

    They’re coming thick and fast now:

    Four Corners appealing for people who are mortgage stressed to contact them.

    Recent statistics show a growing number of Australians are struggling to meet their mortgage repayments.
    Are you one of them? Get in touch with Four Corners to share your story by emailing [email protected].

    —–

    Housing market ‘powder keg’ could blow if interest rates rise

    —–

    Home ownership in Australia in decline for three decades: Grattan Institute

    —–

    Gravity could catch the ‘stupidity’ surrounding house prices as home building set to shrink: Deloitte

    —–

    Interest rate hikes: Here’s the four reasons why the RBA can’t raise rates

    —–

    The MSM is sounding the horn with frightening regularity.

    Klaxons GO!

    • JasonMNan

      I am more inclined to think it will be the states who will tax them. After all the federal government is doing sweet nothing to fund infrastructure. The infrastructure fund has a nice ring to it.

    • GavinMEMBER

      We’re just not building enough houses to meet demand….

      Said every Government official ever.

      Or negative gearing increases supply… wah hey, it sure did. Now can we rein it back in mate? We’ve got 1M more houses than we need… 😀

  4. HixtarMEMBER

    Matt Canavan the mealy-mouthed cunt just tried to defend Adani on Q&A by saying that if they don’t build the mine, then Australia is effectively denying power to over 250 million Indian citizens.

    That went down like a lead balloon.

    • GavinMEMBER

      LOL, if I was interviewing I would have said “Who cares?” tell them to invest in renewables like everyone else should be doing!