Macro Morning

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By Chris Becker

Apart from the ructions surrounding Boris Johnston’s “Borexit”, risk markets are back in force with both sides of the Atlantic lifting overnight in response to the strong start to the week here in Asia. USD reasserted itself slightly, mainly against Yen, giving Japanese markets a big tailwind today while US Treasuries firmed once more. Its earnings week in the US, combined with the excellent NFP on Friday giving the impetus for a continued bull run on Wall Street.

Recapping Asia’s session yesterday where the Shanghai Composite 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. Key long term support at 3000 points remains very strong resistance, but a bottom may be possible here at 2700 points, confirmed if price can get back above the daily high moving average band:

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