Caution reigns again in Asia after a poor lead from Wall Street overnight, with only mainland Chinese shares plus their Australian proxy in the green as the Yuan continues to be dumped. The big move lower by the PBOC has seen offshore trading in Yuan briefly touch the 6.80 level, while the USD is trailing against other currencies, notably Aussie dollar which is fighting to get back above 74 cents.
The Shanghai Composite is climbing very strongly going into the close, currently up over 2% to 2831 points as it finally gets back above former support at 2800 points. The Hang Seng Index has followed slightly, up 0.7% to 28220, potentially creating a bottom here on the daily chart at 28000 as it fails to make a lower low for the session:
S&P futures are up slightly while Eurostoxx are slipping, with the latter indicating a 0.1% fall on the open. The S&P500 four hourly chart suggests a bounce back up to the upper end of this trend channel, after briefly touching support at trailing ATR just above the 2800 level. The BTFD crowd are possibly stepping in here:
Japanese stocks finished the week poorly with the final session as a slightly stronger Yen provided a headwind. The Nikkei 225 closed down 0.3% at 22697 points, still looking quite firm on the daily and weekly charts. The USDJPY pair is trying to push back up above previous ATR support at the mid 112s after some safe haven buying overnight spilled over into the Asian session. I’m watching the 112 handle proper for signs of a possible breakdown:
The ASX200 finished strongly, up 0.3% today to close at 6285 points, continuing its bounce off support at 6200 points . The Aussie dollar was again all over the place with volatility extreme here after getting trashed overnight. This is currently only a game for short term traders, although the medium temr outlook remains down as we approach the 2016 lows:
The data calendar ends the week with a whimper with Canadian monthly CPI the only print of note to watch out for. Have a good weekend!