Macro Afternoon

Advertisement

Its a mixed end to a red trading week here in Asia with only Australian shares putting runs on the board as the bond selloff deepens. The BOJ stepped in to stop yields rising on its own short term 5 and 10s, which sent the Yen down against USD. Risk markets are shaping up for the biggest event on the calendar – US unemployment.

In mainland China the Shanghai Composite just can’t stop falling as it races to terminal support at 3400, currently down 0.3% at 3433 points. The Hang Seng Index is putting in a scratch session to be up a few points at 32750 points, still above tentative support at the 32000 point level:

Advertisement

S&P futures are falling as well as the risk-off mood deepens going into tonight NFP print:

Japanese stocks brushed aside the weaker Yen and fell as the BOJ stepped in to support bonds, with the Nikkei 225 down 0.9% to 23274 points. The USDJPY pair is making another dash for the 110 handle, as price gravitates around the high moving average, with USD bulls betting on a strong NFP print tonight.

Advertisement

The ASX200 was the odd man out, closing 0.5% higher to 6121 points on the back of a weaker Aussie dollar. The Aussie dollar is slipping here, remaining below key support at the 80.50 level as the USD strengthens, with the real support level at the ATR support line at just above the 80 handle proper:

Advertisement

The economic calendar ends the week with the key event of the month – US unemployment (non-farm payrolls).