By Chris Becker
Another exciting week on risk markets with US stocks hitting a record high before retracing alongside European bourses which are still preceding with caution in the face of a growing trade war. Chinese economic data also took the rails off any recovery in local stocks while the falling Aussie dollar is keeping the ASX200 elevated. In currency markets, its all about the USD, now recovering versus not just the emerging markets but also the majors as the US GDP print came in nice and hot, lifting expectations of continued rate rises by the Fed.
Looking at Chinese stocks first, the Shanghai Composite tried to bounce off its recent weekly low, getting back above resistance at 2800 points but this was short lived. The weekly chart shows the lack of upside action with the high moving average not under threat at all. Momentum remains oversold but not out of order, so we could expect further falls from here: