Outside the ASX200, it has not been a good session for Asian stocks, with the local bourse only being supported by a crashing Australian dollar. The USD is firming against all the majors in response to the blow out in Treasury yields overnight with the Kiwi and Yuan also falling sharply throughout the session.
The Shanghai Composite was closed again today for a holiday. The Hang Seng Index is down nearly 2% again to 26565 points, now in full reversal after previously being unable to climb above overhead ATR resistance. This almost takes it back to the previous low, so there maybe more downside potential here:
S&P and Eurostoxx futures are both off by at least 0.5% indicating a rough session ahead tonight, with the former almost down to a two weekly low:
Japanese stocks were supposed to get a tailwind from a lower Yen but instead risk is retracting with the Nikkei 225 closing 0.6% lower to 23975 points. The USDJPY pair is having a very minor retracement, effectively treading water since last night’s breakout, where it’s a case of wait and see mode here before another breakout:
The ASX200 is being supported by a lower Aussie dollar and not much else, rising nearly 0.5% to 6176 points, still unable to get back above former support now resistance at the 6200 point level. The Aussie dollar fell sharply again, breaking below the 71 handle and making another new low for the week. This is too far, too fast with momentum way oversold but any upside here would be a risky and limited swing trade:
The economic calendar is relatively quiet tonight with initial jobless claims in the US the only release of note to watch out for.