Reaction to the overnight rise in rates by the Federal Reserve has been mixed here in Asia with Chinese bourses slipping in the wake of the PBOC lifting interest rates too, while Japanese traders returned from a mid week holiday in a positive mood. The closure in the interest rate differential and the poor jobs print didn’t help the Aussie dollar, taking back half of its overnight gains.
The Shanghai Composite fell sharply at the open but has recovered somewhat after the lunch break to finish 0.5% lower at 3265 points . The Hang Seng Index didn’t do as bad, but still closed in the red, down 0.24% at 31332 points, with the daily price coming back from the high moving average band, and still well shy of rolling ATR resistance above at the 32000 point level:
S&P futures remain steady after last night’s FOMC reaction, with support at 2700 points still playing support here, but some bearish patterns continue to form on the longer timeframe charts:
Japanese stocks reopened from their holiday with the Nikkei 225 rallying to finish up 1% higher at 21591 points. Yen strengthened sharply on the morning session before selling off later in the session with the USDJPY pair almost getting back up to the 106 handle. This is still looking exhausted on the price action on the four hourly chart with momentum oversold:
The ASX200 had a small loss today, down 0.2% or 13 points lower to 5937 points, taking back the previous gains and still well shy of resistance at 6000 points. The Aussie dollar fell immediately on the jobs data but is still above the 77 handle against the USD, with a very volatile – and opportunistic – 24 hours setting up here for a bigger upswing, althouhg I would contend the upside potential is limited:
The economic calendar continues with the Bank of England (BOE) meeting tonight.