Outside China, Asian stocks extended gains after last night’s rally on Wall Street pushed on by comments from the new Fed Chair. The USD continues to power ahead versus the major currency pairs with the Aussie dollar pushed to a two week low, gold at a nearly yearly low while the Yuan remains very weak.
The Shanghai Composite is selling off going into the close, down 0.2% to 2793 points as it flounders below the previous level of support at 2800 points. The Hang Seng Index was worse off, down 0.4% to close at 28060 points, returning to the bottom here on the daily chart at 28000 and looking ominously ready to breakdown below:
S&P futures are slowly building alongsidee Eurostoxx, with the latter indicating a 0.2% or more higher on the open. The S&P500 four hourly chart suggests a possible reversion to the mean after the previous session hit the upper end of this trend channel, but support at trailing ATR support continues to rise up to the 2800 level:
Japanese stocks did well again, supported by a much weaker Yen against USD, with the Nikkei 225 up 0.4%, closing at 22794 points, looking quite firm on the daily chart. The USDJPY pair has pushed above the 113 handle, making a new weekly and monthly high as it barrels down on to the 2017 highs near the 114 level:
The ASX200 has pushed higher after yesterdays retracement, up 0.6% in a very solid move to close at 6245 points, bouncing off support at 6200 points . The Aussie dollar has accelerated its selloff late in the session, breaking in to the mid 73s versus USD, completely retracing its previous tentative uptrend. The target below is the 73 handle proper:
The data calendar includes three important events, first UK CPI print for June, another Fed Chair speech plus the latest DOE crude oil figures.