Chinese stocks again led the selloff here in Asia as the Yuan dived against USD after the new PBOC fix, who seem to be taking a ECB like approach to heading off as much monetary policy as possible in the face of a growing trade war with America. The USD was firm against other currencies although there has been a turnaround later in the session, but the Aussie dollar remains quite depressed.
The Shanghai Composite continues its sell off, down another 1% to close at 2813 points and still in bear market territory. The Hang Seng Index moved at the same magnitude, falling nearly 1.2% to 28561 points for another bearish daily candle. Ominously there is daylight below on the weekly chart to 24000:
S&P futures are rolling over alongside Eurostoxx with the four hourly chart showing a return to the 2720 level at the low moving average as last nights weak attempt at a rally fails:
Japanese stocks were mixed with the broader TOPIX putting in a positive session, while the Nikkei 225 closed about 0.3% lower at 22271 points, still not breaking into a full correction. The USDJPY pair was bunching up at just below the 110 handle but has rejected this overhead resistance, flopping back below and heading for another possible downleg. I’m still watching 108.75 as the uncle point here:
The ASX200 put in a scratch session, buoyed by a lower Aussie dollar, closing only a couple points down to 6195 points. The Aussie dollar is now accelerating in its selloff with a much steeper downtrend line here on the four hourly chart, about to crack trailing ATR support at the 73.60 level:
The data calendar has a couple of very pertinent releases tonight, namely the US advanced goods and durable goods orders for May.