Its risk on across Asia today in response to the very positive NFP on Friday night on Wall Street, setting the agenda for the month ahead. Chinese stocks lead the way, completely ignoring any negativity from the trade war with Trump as the USD fell against all the major currencies, sending the Aussie dollar up to a two week high.
The Shanghai Composite has now reversed its previous selling mood, bouncing strongly to close 1.8% higher to close just a smidgen below the previous level of support at 2800. The Hang Seng Index has done about the same, gapping solidly from its bottoming action on Friday and then closing some 1.7% higher at 28802 points. The daily chart is optimistically setting up for a swing higher here:
S&P futures are up about 0.4% to extend Friday night gains, which saw the bourse move higher after its breakout above trailing ATR resistance as the bullish cup bottom pattern came to fruition:
Japanese stocks are doing well despite a stronger Yen with the Nikkei 225 lifting just over 1%, closing at 22052 points, clawing its way back above daily ATR support at the 22000 point level. The USDJPY pair continues its sideways bounce as a symmetrical triangle pattern on the four hourly chart suggests a resolution soon near ATR trailing support at the 110.30 level:
The ASX200 went along for the ride but took the back seat, eventually closing only 0.2% higher at 6286 points to remain well above 6200 points and continuing its own bullish path. The Aussie dollar has shot higher, starting the Monday morning with a gap above the 74 handle as USD weakens, expanding on its Friday night push higher. Its looking mightily overbought here and ripe for a reversion:
The data calendar starts the week slowly with the usual weekly Treasury auctions but there are a few central bank wonks to keep an ear out for including Mario Draghi in Brussels.