Another mixed day here in Asia, unable to translate the positive overnight gains on Wall Street as the Yuan continued to stumble against USD. The Aussie dollar fell on a poor CPI print while other currencies are starting to lift higher against USD, with Yen safe haven buying keeping the USDJPY pair down, but not the usually correlated Japanese stocks.
The Shanghai Composite has taken a pause on its breakout, going nowhere today to finish just above 2900 points as it remains well above former support at 2800 points. The Hang Seng Index has done much better, lifting nearly 1% to 28944, breaking out of the bottom pattern here on the daily chart at the 28000 level, maintaining price above the high moving average in a clear sign of a swing move higher:
S&P futures are up slightly alongside Eurostoxx with traders anticipating more earnings tonight and the ECB meeting tomorrow. The S&P500 four hourly chart is suggesting another retest of last weeks high just above the 2818 level:
Japanese stocks have done much better than expected with a stronger Yen normally providing a headwind. The Nikkei 225 closed 0.4%higher at 22614 points, abating what looked like a clear reversal on the daily chart. The USDJPY pair is unable to get out of its recent funk, not moving at all on the four hourly chart and stuck just above the previous downtrend line:
The ASX200 has fallen off a little on the back of the CPI print, down 0.25% to close at 6247 points, still respecting support at 6200 points but unable to successively retest the recent highs. The Aussie dollar went a little haywire on the CPI print before thrown back below the 74 handle where it sits going into the City open:
The data calendar continues tonight with the DOE crude oil inventories and US home sales.