by Chris Becker
Asia ends the week in a positive mood – outside China at least – as traders gear up for the most important economic event on the calendar, Octobers US unemployment print (NFP).
In mainland China the Shanghai Composite has slumped again, falling 0.8% to be at 3356 points, now well below previous resistance at 3400 points, again rejecting that important level. The Hong Kong based Hang Seng Index is doing better, up 0.3% and taking back yesterdays losses to close at 28598 points. Price remains at or slightly abvoe the high moving average here on the daily chart which reinforces the bullish mood:
S&P futures have slowly melting higher in anticipation of tonights NFP, with the NASDAQ looking tenous following some poor tech stock results (FB/TSLA et al)
Japanese stocks were closed for a holiday and trading in Yen was muted with the USDJPY pair retreating slightly ot be just below the 114 handle as it continues to reject overheard ATR resistance at the 114.10 level:
The ASX200 had a better end to the week finishing up 0.4% higher to 5957 points. It was a mixed result across the sectors, with mining stocks doing well, banks mixed across the board while gold stocks are recovering as the Aussie dollar fell.
Indeed the Pacific Peso has swung back below trailing ATR resistance, now below the 77 handle against USD. Not a good sign before tonights unemployment data and note that price all week has been unable to breach the previous very long held resistance level at 77.25:
The data calendar concludes the week with US October non-farm payrolls, the most important indicator on the economic calendar. We should see a confirmation that the Fed will indeed raise rates next month (following the BOE last night), but don’t discount a surprise!
Have a good weekend, and remember “we must work harder.”