As the traders on Wall Street return from their holiday tonight, the session here in Asia has been less than sterling with only Australian stocks putting on any gains. The USD has moved lower particularly against Euro but also notably Yuan as the Chinese trade tariff deadline gets closer.
The Shanghai Composite is in a selling mood again, falling over 0.9% to close at 2733 points, remaining well below the previous level of support at 2800 and continuing the downward pressure. The Hang Seng Index did about the same, falling 0.9% to be at 28038 points. While heavily oversold on the daily chart, there’s still no evidence here of an imminent uptick:
S&P futures are flat as are the Eurostoxx futures with caution reigning as Wall Street returns after a night of frivolity. I’m still cautious on being bearish US stocks as the short term bottoming pattern developing here on the four hourly chart remains in play, but the last series of session highs are nothing to get excited about:
Japanese stocks are falling off again even as Yen sells off with both the TOPIX and Nikkei 225 falling around 1% lower, the latter closing at 21546 points, confirming its move well below daily ATR support at the 22000 point level. The USDJPY pair has bounced off ATR trailing support with a strong signal here for USD bulls, getting back above the high moving average on the four hourly chart:
Yet again the local bourse is pushing aside bad news with the ASX200 lifting over 0.5% to be back above 6200 points, closing at 6215. The Aussie dollar is holding on dearly here, trying to lift back up to the 74 handle at trailing as USD weakens, matching the Friday night high, but the trajectory is still down:
The data calendar ramps up with the return of US data, namely ISM services print plus the latest FOMC minutes, but also watch out for a speech by BOE governor Mark Carney