by Chris Becker
The new highs keep on coming as the BOJ holds fire with no new stimulus or a shift in language with the Yen selling off slightly, helping domestic shares. The rest of Asia keeps firing on all cylinders, with the Aussie unemployment numbers taking a little wind out of the Aussie dollar, but not the ASX.
In mainland China the Shanghai Composite closed up 0.4% higher to remain above previous resistance, now support at 3200 points. The Hong Kong based Hang Seng Index is up a near equal amount still making good on its recent breakout above 26,000 points, but looking way overdone here and ripe for a small retracement:
The Nikkei had a good session finally, finishing up 0.6% to build above its psychological important 20,000 point level. The bottom in the USDJPY pair is firming here with a break above the 112 handle with a probable long swing higher tonight:
S&P futures are slowly moving higher, ready to make another new high tonight:
The ASX200 had another solid session too, up 0.5% to 5761 points, gapping up on the open, absorbing the unemployment print with aplomb. The major banks did the heavy lifting on the back of the APRA lettuceleaf approach, while Fortescue dropped nearly 4%
The Aussie dollar is possibly putting in a small top here, retracing from its near 80 handle against USD, coming back a little on the stable unemployment print. The ATR support level at the 79 handle proper is where to watch tonight on any fallout in the ECB decision:
The data calendar will focus squarely on the ECB meeting later tonight followed by weekly initial jobless claims in the US.