Not the best finish to the week here in Asia, with Chinese traders probably glad they’ve had a long holiday. Most markets finished in the red or with minor scratch sessions as the Chinese/American tensions in the South China Sea are continuing to weigh. The Australian dollar remains depressed alongside other undollar assets, while Yen is strengthening on the safe haven buy as FX traders position for tonight’s NFP print in the US.
The Shanghai Composite was closed again today for a holiday. The Hang Seng Index is finishing the week with a scratch session, down just a few points to 26596 points, still in a depressed start after after previously being unable to climb above overhead ATR resistance. This keep it near the previous low, so there maybe more downside potential here if the low breaks:
S&P and Eurostoxx futures are both quite tepid here with the latter off by only 0.1% or so indicating a flat session ahead tonight before the US open which will be dominated by the reaction to the unemployment print. The four hourly chart is looking weak for the former, still down at a two weekly low:
Japanese stocks are in retracement mode with the Nikkei 225 closing 0.8% lower to 23783 points, but still well above the previous breakout level. The USDJPY pair is continuing its minor retracement, still just below the 114 handle, where it’s a case of wait and see mode here before another breakout:
The ASX200 is being supported by a lower Aussie dollar, finishing the week about 0.1% higher to 6185 points, still unable to get back above former support now resistance at the 6200 point level. The Aussie dollar has cratered here, still well below the 71 handle. As I said yesterday, this is too far, too fast with momentum way oversold as a bullish falling wedge pattern forms on the four hourly chart, but any upside here would be a risky and limited swing trade:
The economic calendar is all about the non-farm payroll (NFP) US unemployment print tonight but there’s also the Canadian numbers and a private oil rig count to watch out for.
Have a good weekend!