by Chris Becker
A recovery of sorts in Asia today with most stock markets lifting as selling sentiment exhausted itself. Chinese banks received some big injections from the PBOC today with commodity prices relatively stable. The Aussie dollar found a floor finally on the surprisingly good unemployment print.
In mainland China the Shanghai Composite is looking like closing just 1 point below 3400 points, falling about 0.1% despite the PBOC injections. The Hang Seng Index is up 0.7% to be back above 29,000 points as the daily low moving average band is being respected here on the daily chart:
S&P futures have climbed out of the hole, slowly getting back to previous support at 2575 points:
Japanese stocks have rebounded on the cheaper Yen with the Nikkei up 1.4% to be at 22351 points after recently breaking through daily support as part of a wider correction. Whether this can hold up or not is still dependent on Yen, which has sold off with the USDJPY pair back above the 113 handle. This looks like only a swing from short covering with heavy resistance overhead at the 113.40 level:
The ASX200 actually followed Chinese stocks and was looking at a small loss today, but eventually rallied to close 0.2% higher to 5943 points. Still nowhere out of trouble, but the bulls are all looking at each other expecting it to continue higher….
The Australian dollar briefly thought about rallying on the “good” employment print but just can’t get back above 76 cents against the USD. The four hourly chart shows a continued downtrend here with some support at 75.80, but its weak:
The data calendar has a few minor releases overnight but the biggest one will be a talkfest with BOE Governors.