Macro Afternoon

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by Chris Becker

A pensive day in Asia as risk markets react meekly to the overnight positive mood as they pre-position for tonights US non farm payrolls report. Seconday PMI figures from China reinforced the growth story from the Middle Kingdom while concerns over North Korea abated.

In mainland China the Shanghai Composite is up a few points at 3366 still extending its pause here after the big breakout early in the week. The Hong Kong based Hang Seng Index is putting in a scratch session to be poised here at 28000 points. This is setting up for a further move higher as it ends the week beyond its previous high:

Japanese stocks were up slightly even as the Yen strengthened somewhat during the session. The Nikkei lifted nearly 0.25% to close at 19700 points, still below the very firm resistance at the 20,000 point level but continuing its slow recovery. The USDJPY pair has pulled back and stabilised just above the 110 handle with the next target at 110.90 if it can break its high moving average tonight:

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S&P futures are reaching higher looking to build on last nights gains above the previous resistance, now support level at 2459 points:

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The ASX200 finished the week with a sigh today, putting in a scratch session to be at 5720 points, still just above the 200 day moving average.

The Aussie dollar rebounded abov ethe 79.30 level but has run out of puff late in the session and is setting up for a pullback to the 79 handle later tonight. There is still a potential for a fall here below trailing ATR support at the 78.80 level:

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The data calendar finishes the week with the big one – August US non-farm payrolls (unemployment).

Have a good weekend!