Asian stocks are doing well following the solid Wall Street lead with the USD still looking weak heading into tonights CPI print. The Australian dollar has continued its bounce off the 70 cent level while Yen has sold off giving Japanese stocks a small boost to start the week.
The Shanghai Composite is putting on the runs to be well over 3000 points again, currently up 1.7% and looking a lot better after its weak finish last week. The Hong Kong Hang Seng Index is doing well too, up 1.5% to 28919 points, continuing its bounce off trailing ATR support on the daily chart. The next level to beat is the former daily highs above 29000 proper:
US and Eurostoxx futures are broadly up as hope breeds over the Brexit deal and further stability from US macro news. The S&P 500 four hourly chart is now back in the zone following last week’s dip but can it maintain it as momentum remains only slightly overbought:
Japanese stock markets have continued their recovery due to a weaker Yen and the expanded risk appetite with the Nikkei 225 leaping nearly 2% higher to just over 21530 points, trying to finally break free of its previous breakout point in early February. The USDJPY pair has pushed through the high moving average on the four hourly chart as it tries to get back to the ATR support/resistance key level at the mid 111’s:
The ASX200 is barely up today, unable to make any headway on a positive US lead, closing at 6186 points with a poor reaction to the release of home loan/investment lending numbers. The Australian dollar has continued its bounce but looks to be stalling here above the mid 70s against USD as it remains quite overbought from yesterday’s surge:
The economic calendar continues tonight with a slew of UK based tertiary figures, including manufacturing, but everyone will be awaiting the further reaction to May’s deal with Brussels. In the US its the monthly CPI print that is sure to be a wild catalyst for USD.