by Chris Becker
What was supposed to be a risk-on day was spoiled somewhat by a Trump speech which included equal amounts of rhetoric and “I can’t believe he just said that”, sending the USD higher on concerns about trade. Some Chinese markets were closed due to a typhoon while the ASX200 was the worst performer as a few earnings released surprised to the downside.
In mainland China the Shanghai Composite is again putting in a scratch session, only up a few points higher at 3292 as key resistance at 3300 points seems to be just out of reach. The Hong Kong based Hang Seng Index was closed today due to a Typhoon hitting the island. The market remains poised here to break higher after successfully bouncing off support:
Japanese stocks are up slightly as the Yen weakened overnight. The Nikkei closed 0.25% higher at 19494 points, still confirming the very firm resistance at the 20,000 point level. The USDJPY pair has bounced up to the 109.80 mark but found resistance there after Trump’s speech falling back to the midpoint of the moving average band at 109.40:
S&P futures are steady here with some hesitation around the important inflection point at the weekly uptrend line. Can the market sustain this bounce or is it just a swing and a chance to short?
The ASX200 is the only fly in the ointment in Asia falling approx. 0.22% to 5737 points, negating the positive open and lead from Wall Street overnight. While mining services companies did well today it was healthcare stocks that dragged the bourse down, namely Healthscope off 15% on a massive profit slide.
The Aussie dollar has retraced almost all of its recent breakout, making a new low for the week as it crosses below the 79 handle. ATR support at the 78.80 line must hold here or its back down to its previous trend:
The data calendar will include a closely watched speech by ECB President Mario Draghi in Germany followed by more house price and sales figures in the US.