Asian stocks have rallied on the back of the reversal overnight as concerns over Trump’s trade war abate, as oil continued to blip higher, the USD remained steady after considerable action on the majors overnight . The RBA meeting did nothing to help the Aussie dollar bulls, despite their upbeat view, while bonds sold off slightly.
The Shanghai Composite finally put some runs on the board, gaining 1% to close at 3289 points, just shy of key resistance at the 3300 point level. The Hang Seng Index has boomed – up over 2% to close at 30557 points, bouncing off key support at 30000 as momentum picks up off the bottom reading on the daily chart, but its not out of danger yet:
S&P futures are slowly building, ready to crack through the Friday night high at the 2722 point level:
Japanese stocks rebounded on the positive mood and with a weaker Yen as a tailwind, the Nikkei 225 closing just over 1.68% higher to be at 21417 points. The USDJPY pair is holding above the 106 handle afterbreaking out last night above the moving average channel, but it still has trailing ATR resistance at the 106.50 level to clear:
The ASX200 did well, closing 1.1% or 67 points higherto 5965 points, almost up to the psychologically important 6000 point level as bank stocks lead the charge to re-rate risk again. The Aussie dollar was ready to break out on the RBA meeting but has deflated somewhat on the vague language, retreating back to the 77.70 zone with the potential for more downside action tonight:
The economic calendar is relatively quiet tonight with some retail PMIs to watch in Europe and not much else.