Macro Afternoon

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It’s been an interesting start to the week here in Asia with minor falls across the board on stock markets, with currencies also moving sharply around on the trifecta of Brexit news, BOJ Kuroda’s press conference and the reaction to Friday night’s non-farm payroll (NFP) report, aka US unemployment.

The Shanghai Composite is down over 1% going into the close to be at 2647 points, still maintaining itself above key support at the 2600 level but absorbing the downturn in risk sentiment. The Hang Seng Index is doing even worse, taking back most of Friday’s gains by dropping over 2% to 25873 points, getting back below the previous support level at 26000 points. Not a decisively bad day but it does take the sails out of what was looking like a nice bounceback:

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US and Eurostoxx futures are flat, with the four hourly S&P 500 chart showing some sideways action here above tentative ATR trailing support at the 2700 point level. I still contend we can’t call this correction over before getting back above the previous monthly trendline (in black ) at the 2745 to 2750 area:

Japanese stocks have fallen despite a rising USDJPY pair, as they absorb the Friday night risk off mood with some hesitation from Governor Kuroda’s comments today. The Nikkei 225 closed 1.3% lower to 21946 points, but still significantly higher than its lows of last week. The USDJPY pair was pushed higher throughout the session to match last week’s highs just above the 113 handle and looks set to breach those later tonight:

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The ASX200 did not escape the selloff and has retreated again to finish 0.5% lower to 5818 points. The Aussie dollar hasn’t really moved at all as trader’s anticipate tomorrow’s RBA meeting, easing just below the 72 handle here:

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The economic calendar starts the week with a couple central banker speeches to watch out, then the October US services PMI.