The Asian session starts the week in a strong position, stocks bouncing after the coming and going of Friday nights US unemployment print, which saw a general advance in the USD. Australian macro news was not good today, sending the Aussie lower before tomorrow’s RBA meeting while offshore trading in Yuan was quite volatile due to the mainland Chinese holiday and lack of a fix.
The Shanghai Composite was closed as a result, while the Hang Seng Index advanced about 0.2% to be at 27990 points, stabilising somewhat here on the daily chart after last week breaching the e previous false break high above 27100 points:
US and Eurostoxx futures are flat with the four hourly S&P 500 futures chart showing an anchoring at the psychologically important 2700 point level that is dependent on continued good earnings, with solid support at 2660 or so below:
Japanese stock markets have risen due to the much weaker Yen with the TOPIX up near 1% while the Nikkei 225 is up about 0.4% going into the close at 20862 points. The USDJPY pair has continued its Friday night bounce and is now coming up against the previous weekly session highs at just below the 110 handle:
The ASX200 was a little voaltilie today, opening lower before recovering as traders position before the Royal Commission report into banking is presented this afternoon, with the market up 0.5% to just below 5900 points. The Aussie has fallen back towards the 72 handle again after failing to make a new high on Friday night against the general USD strength and the poor macro figures today – watch 71.90 as the key reversal point where the shorts will pile in again:
The economic calendar starts the week relatively quietly as it usually does post the NFP print, so not much to watch out for tonight except continued speculation about Brexit and the upcoming BOE meeting.