Macro Afternoon

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Kind of a nothing day here in Asia with the Chinese economic data nor the positive lead from Wall Street overnight failing to excite anyone save in Japan, which cashed in on a much weaker Yen. The USD is slowing growing in strength again with Pound Sterling in its sights tonight with probably further fallout from the Broxit.

The Shanghai Composite pulled back a little after the excellent start to the week, falling some 0.4% to close just above the previous level of support at 2800. The Hang Seng Index instead put on some small gains, up 0.15% or so to 28731 points. The daily chart is still optimistically setting up for a swing higher here but so far its been muted:

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S&P futures are barely up alongside Eurostoxx as the broader market pauses here after extending its Friday night gains. This smells more like a rollover to me with price well extended now and momentum reverting to the mean, so watch the high moving average level as the reversion target:

Japanese stocks did well as expected with the weaker Yen providing a tailwind as the Nikkei 225 lifted just over 1%, closing at 22293 points, clawing its way back above daily ATR support at the 22000 point level. The USDJPY pair continued to surge higher but found some temporary resistance just above the 111 handle, with momentum looking way overdone and ripe for a pullback:

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The ASX200 was the worst in the region, falling some 0.4% to close at 6258 points, pushing aside the positive Wall Street lead. The Aussie dollar has hit some heavy resistance here after its Friday night NFP gains, unable to cross back above the 75 cents level against USD, ready to break below the low moving average as The City opens:

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The data calendar continues tonight with a Eurocentric focus, first with a GDP estimate in the UK, then the closely watched ZEW Survey in Germany.