By Chris Becker
Stock markets continue to re-risk after earnings in the US surprise to the upside, with the USD gaining strength as Treasury yields spike above the magical 3% level. With a slew of central bank meetings last week, currency markets have returned to some semblance of low volatility but have the heavy boot of USD repratriation on their necks, especially the Aussie dollar. Its the Fed’s turn this week with a highly anticipated FOMC meeting mid week to watch on your calendar.
Looking at Chinese stocks first, the Shanghai Composite continued to be pushed below the 200 day moving average after previously taking out February correction low at 3100 points. While there was a sense of a possible recovery mid week its still on a downward trajectory to the key terminal support level at 3000 points. This must hold during the week ahead or its off to 2600 or lower swiftly:
