Stocks are much more positive here in Asia compared to overnight markets and the mixed start to the week. Chinese shares are higher on a steady Yuan fix, while Australian shares are still suffering from a higher dollar but aren’t falling back either. Going into tonights Federal Reserve meeting, currencies are relatively quiet although a higher Aussie and Kiwi on the back of a record NZ trade deficit, while Yen strengthen ever so slightly.
The Shanghai Composite came back stronger today and closed nearly 1% higher to just above 2800 points, starting to build confidence here as the stability in Yuan comes into play. The Hang Seng Index did even better, catching up after its holiday yesterday, closing 1.5% higher , this time actually threatening overhead ATR resistance. There is potential here if it can cross above key resistance at the former daily highs at 28500 points:
S&P futures are steady going into tonights FOMC meeting with Eurostoxx issues also indicating a mixed start tonight:
Japanese stocks were mixed with the TOPIX sliding while the Nikkei 225 closed only 0.4% higher to just above 24000 points. The USDJPY pair can’t seem to get much higher above short term resistance at the 113 level here, with momentum indicating a possible reversion to the mean if USD strength evaporates on the Fed rate decision later tonight. I’m watching the 112.50 level closely:
The ASX200 is treading water again, at least putting on some gains with a close 6 points higher to 6192, slowly itching to former support now resistance at the 6200 point level. The Aussie dollar seems to have finished its recent retracement, spiking above the downtrend here and making a new four hourly session high but it’s a long road back above the 73 handle here:
The economic calendar will tonight be focused squarely on the FOMC meeting, but there’s also the latest DOE oil inventory data and new home sales to watch closely.