By Chris Becker
Risk markets remained in a holding pattern again overnight as a slew of macro events and news weighed on any risk taking, sending USD higher. The US advanced goods trade deficit blew out while durable goods orders came in a little weaker than expected, but all eyes were on Washington for Michael Cohen’s testimony, Vietnam for the US/NK talks and the possible hot conflict brewing in Kashmir. Caution reigns!
Looking first at the action on the Asian session yesterday, the Hong Kong Hang Seng Index eventually closed flat, absorbing its own slightly disappointing GDP print to remain below 29000 points and closing at 28757. Although the current rally remains intact price had gotten ahead of itself slightly so this is no surprise, with the interim target still at 30,000 points, but watch that trendline and momentum readings carefully for a correction:
