Macro Afternoon

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Another solid day for risk markets here in Asia, taking the US lead overnight. The Chinese CPI print disappointed on the downside, with the USD losing some ground against the Aussie but not Yen or other majors leading into tonights BOE meeting. Geopolitical risks are coming to the fore again with Malaysian elections and tensions in the Middle East weighing.

The Shanghai Composite had another attack at the next resistance level at 3200 points, gaining nearly 0.5% to 3174 points. The Hang Seng Index did even better, gaining 0.9% to finish at 30803 points in what is now a two day breakout. This takes it above the recent daily highs that were forming a resistance level at 30500 or so as momentum builds to the positive side:

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S&P futures are building strongly here again with the four hourly chart suggesting a push above the 2700 points level:

Japanese stocks have finally been able to translate the selloff in Yen with the Nikkei 225 lifting some 0.4% to finish at 22497 points. The USDJPY pair is gaining, ready to take out last week’s high at the 110 handle, setting up for further gains:

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The ASX200 was the laggard again, only lifting 0.2% to remain above the 6100 point level at 6118 points, almost taking out the previous series of highs. The Aussie dollar is coming back slightly, better than I expected, with this afternoons session taking it above the high moving average on the four hourly chart, but everything is against it here:

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The economic calendar will focus squarely on tonights BOE interest rate meeting which will be closely followed by the April US CPI print.