Asian stocks are slipping going into the last session of the week and in preparation for tonight’s US unemployment print. A much lower Yuan devaluation has sent Chinese stocks down, capping off a very bad week while the USD remains strong against the Aussie, safe haven buying in Yen has kept the USDJPY pair flat.
The Shanghai Composite remains in freefall, down nearly 0.5% going into the close, currently at 2757 points. The Hang Seng Index is doing slightly better after a much larger retracement in the middle of the session and looking set to close only 0.2% or so lower, still well below terminal support at 28000 points. This is an ominous breakdown on the daily chart:
S&P futures are off only slightly in response, but it remains to be seen if the rise in Apple shares can keep the rest of the market afloat tonight. Resistance at last week’s high at the 2845 level is the key area to beat:
Japanese stocks are mixed with the broader TOPIX down while the Nikkei 225 is closing in on a scratch session, currently at 0.1% lower at 22496 points, still stuck in a sideways move on the daily chart. The USDJPY pair is in a similar position, still stuck below the 112 handle unable to make good on its own breakout earlier in the week, as it gravitates back to the midpoint of control here:
The ASX200 is down 0.1%, reversing the gains made early in the session as the retail sales print disappointed. It looks set to close below key resistance at 6300 points, currently at 6235. The Aussie dollar is trying to find a bottom here, equating to a two week low at the mid 73 handle, but looks very weak going into tonight’s NFP print, where this bottom could be a false floor:
The economic calendar finishes the week with the US unemployment non-farm payroll report that everyone will hinge their take on risk for the rest of this month.