A mixed day here in Asia in response to the suddenly positive mood on Wall Street overnight, with stock markets all over the place. Aussie stocks lept higher while Chinese stocks remain on the ropes as the Yuan remains under enormous pressure. The Aussie dollar eventually rose after a do-nothing RBA meeting, while commodity prices feel the heat of a rising USD.
The Shanghai Composite has clawed back a small amount today after yesterday’s free fall, rising approx. 0.2% to 2779 points, still well below the previous level of support at 2800. The Hang Seng Index reopened and played catchup, falling nearly 2% to be at 28423 points and heavily oversold:
S&P futures are slowly building with the Eurostoxx futures also up about 0.4% goign into tonight’s session. With a holiday tomorrow, trading volumes are likely to be light but there is a short term bottoming pattern developing here on the four hourly chart as support at 2700 remains strong:
Japanese stocks are barely holding on after cracking yesterday with the Nikkei 225 closing only a few points lower to 21785 , still below daily ATR support at the 22000 point level. The USDJPY pair was looking very toppy and again breached the 111 handle before coming back to the trendline from last week’s lows. I’m still watching the low moving average/trendline area at the 110.60 level for signs of a reversal:
Can’t keep the ASX200 down! The local market lifted over 0.5% to be back above 6200 points, closing at 6210 and taking the non-negative Wall Street mood in stride. The Aussie dollar dropped on the surprise building approvals print this morning, but then came back after the non-even of the RBA meeting in the afternoon. The four hourly chart shows a significant bounce off the 73 handle as traders weighed up the non-move, with the 74 handle at trailing ATR resistance above the target here in the short term bounce:
The data calendar continues with US factory orders and durable goods orders.