An unimpressive result from the Chinese trifecta of mid tier data, alongside a poor lead from Wall Street overnight saw Asian stocks sell off across the board. An equally unimpressive jobs report locally saw the Aussie dollar flounder after its mild selloff against the USD in the wake of last nights FOMC meeting.
The Shanghai Composite continues its slump, falling 0.4% lower to 3039 points, now on track to have another crack at falling below terminal support at 3000 points proper. The Hang Seng Index has tumbled even further, falling 1.2% to close at 30371, almost reaching the intersection of its weekly uptrend line and daily ATR support at 30000 that must hold:
S&P futures are falling alongside Eurostoxx, as everyone gets cautious going into the ECB meeting tonight:
Japanese stocks couldn’t escape the selloff as Yen was bid strongly against USD instead of buying stocks. The Nikkei 225 closed about 0.9% lower, closing at 22738 points, setting up powerful overhead resistance at the May high. The USDJPY pair is dicing with the 110 handle and looks set to finish the week where it started, only giving the intraday traders anything to write home about:
The ASX200 didn’t do as badly as I expected, falling only 0.13% to finish at 6012 points as a result, just above key support at the 6000 point barrier. The Aussie dollar however is looking ready to selloff once The City opens with a poor showing against a fairly okay – but structurally worrisome – unemployment print. This is the lowest session low for the week and 75.40 or so my target here as negative momentum accelerates:
The data calendar doubles down tonight with the ECB meeting, with all eyes and ears on Super Mario in the press conference thereafter. We also get retail sales and initial jobless claims from the US.