Asian markets finish a volatile week in a mixed state with Chinese bourses liming along while Japanese and Australian markets reacted positively to the strong Wall Street lead from overnight. The USD is also retreating slightly as technical levels come into play, with the Aussie dollar firming on Governor Lowe’s comments this afternoon in Parliament.
The Shanghai Composite looks like closing the week with a new low, falling over 1.3% to be well below tentative support at the 2700 point level, closing at 2669 points. The Hang Seng Index performed well enough, limping along to finish only 0.2% higher at 27149 points, still maintaining its drop below terminal support at 28000 points, so this is nowhere near over:
S&P futures are up slightly with Eurostoxx futures basically indicating nothing-burgers at the open tonight. USD strength is no longer weighing on equities with the four hourly chart coming back strongly to be back above the start of week lows, with resistance at 2840 looking to be pushed aside tonight:
Japanese stocks remain quite cautious here, as the Yen moves nowhere in a tight band, the Nikkei 225 closed only 0.35% higher at 22270 points. The USDJPY pair bounceback continues but is looking weak here with continued resistance at the 111 handle , and still unable to get above the high moving average on the four hourly chart:
The ASX200 finished the week high and dry above 6300 points with a steady 0.17% higher close today at 6339 points. This means 6700 is likely in the medium term – if the Aussie dollar maintains this weakness. In the short term we might be in for a relief rally as buyers as stepping in here at just below the 73 handle – watch ATR resistance tonight to come under threat
The economic calendar finishes the week with a few mid tier prints, namely Canadian CPI and Uni of Michigan consumer sentiment data.
Have a good weekend.