by Chris Becker
A mixed day in Asia with most non-Chinese share markets advancing as optimism still held on after last night’s drubbing on Wall Street. The USD was relatively stable against Asian currencies, but the Aussie dollar remains under threat following the deflationary CPI print.
In mainland China the Shanghai Composite is up slightly around 0.25% higher to be at 3405, pipping just above the key resistance level that has been doggedly stubborn. Can it hold here? The Hong Kong based Hang Seng Index is the odd man out, down 0.3% to 28229 points as it reverts to mean against the long held uptrend on the daily chart:
S&P futures are off slightly again as earnings season rolls on, following the falls from last night. ATR support at the 2550 level must hold here overnight:
Japanese stocks have basically put in a scratch session, with the Nikkei closing up only a few points higher to be at 21739 points. The USDJPY pair is slowly reverting as well as Yen strengthens slightly here, deflating to the 113.40 zone and just on long held resistance:
The ASX200 put in another weak session, finishing just 10 points higher at 5906 points. Last week’s breakout is not yet following through with confidence as ANZ falls over 1% on its profit result today.
The Aussie dollar is trying to find a bottom here after the previous CPI print sent it plummeting to the 77 handle. There is a possibility of a swing higher here, so watch the high moving average at the 77.30 zone for any signs of life:
The data calendar will be dominated by the ECB interest rate meeting tonight, followed by the advanced goods trade balance in the US.