by Chris Becker
The USD has stalled and turning tail against Yen, but not the Aussie dollar which now looks finished. Stocks in Asia on the main rallied, putting in some solid sessions to finish what has been a volatile week. All eyes now to Wall Street to see if it can follow through on last night’s bounce.
In mainland China the Shanghai Composite continues to retreat below 3400 points, down 0.6% to 3378 as another week goes by without a resolution. The Hang Seng Index is up another 0.8% to be at 29,254 points, making a new high as the daily low moving average band is being respected here on the daily chart:
S&P futures are relatively steady after last night’s bounce back, hovering around previous resistance at 2585 points:
Japanese stocks have moved slightly higher to finish the week on a more positive note. The Nikkei closed up 0.2% to be at 22396 points slowly crawling above daily support at the 22000 point zone. The headwind however is Yen which is strengthening once more as the USDJPY pair heads back below the 113 handle. The high moving average on the four hourly chart has been rejected and we’re seeing a breakdown here:
The ASX200 also finishes the week on whimper to close 0.2% higher to 5957 points.It’s slowly getting out of trouble here, helped by a lower Aussie dollar and the positive mood on Wall Street, but I would contend that 6000 points may prove too much resistance next week.
The Australian dollar is done for here, breaking down clearly as you can see on the four hourly chart, brushing aside support at the 75.80 level. From here its down to 73 cents or thereabouts in my view:
The data calendar finishes the week with Canadian CPI and US housing starts.