The poor showing in European stocks overnight has led to a mild selloff on Asian stock markets, not helped by the still closed Chinese bourses. The USD slipped against the Aussie dollar on the release of the latest RBA minutes but the Yen weakened, however it did not help Japanese stocks as expected. Caution is still in favour in non-US risk markets.
S&P futures have retreated slightly in anticipation of the long weekend opening tonight. I’m still watching 2755 points as the next resistance level to beat:
Japanese stocks fell with the broader TOPIX off 0.6%, the Nikkei 225 closed nearly 1% lower to 21940 points, taking back most of yesterdays gapping gains. Even with some assistance from a weaker Yen, I don’t think this market is poised yet for a better recovery:
The USDJPY pair slipped higher, now above the high moving average on the four hourly chart at 106.75 or so with the potential to carry this up to the 107 handle for a swing long play only:
The ASX200 had a scratch day, finishing where it started at 5940 points. Indecision and caution are ruling here with mother America to hold the hand, with banks retreating overall. The Aussie dollar gained on the RBA February minutes, rebounding off its base at the 79 handle, but is yet to get higher than its Monday morning open, so I’m watching the 79.40 level for signs of a follow through from The City tonight:
The economic calendar continues with the closely watched German ZEW survey while the Treasury auction deluge begins in the US.