Macro Afternoon

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The rally in Asian shares slowed this afternoon as comments from the Chinese commerce industry on the global slowdown took risk well off the table. The Australian dollar cracked to a new daily low while Yen rallied on the risk off mood, affecting domestic Japanese shares.

The Shanghai Composite is down over 0.4% going into the close, currently at 2555 points after being up nearly the same amount before the lunchbreak. The Hang Seng Index was down even further, off by 0.6% to 26748 points, although this hasn’t made a new daily low as the daily chart still shows a lot of internal strength here:

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US and Eurostoxx futures are both down around 0.4% or so going into the London open with the four hourly S&P 500 futures chart still unable to break through resistance at the pre-correction level at 2630 points with what looks like a rollover in the last 24 hours:

Japanese stock markets were mixed with the TOPIX closing higher while the Nikkei 225 went down 0.2% to 20402 points. This was mainly due to a lower USDJPY pair as Yen buyers came to the fore again, taking the pair back below the 109 handle, but not making a new session low yet:

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The ASX200 had the best session in the region, again, finishing 0.3% higher to 5850 points, really getting some positive momentum now as it builds over the 5800 level and looking quite bullish on the daily chart. This is likely due to the Aussie dollar which has broken below the 72 handle and looks like selling off tonight as it breaks below solid support at the 71.50 level:

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