By Chris Becker
US stock markets fell overnight as the trade deficit figures blew out more than expected, with risk sentiment not helped by the OECD lowering its forecast for global growth. This pulled down commodity currencies, with the Aussie dollar doubly hit on the poor GDP yesterday as it looks certain the RBA must cut rates soon to forestall an actual recession.
Looking first at the action on the Asian session yesterday, the Hong Kong Hang Seng Index finished up only slightly, as the Shanghai Composite surged over 1.5% higher. The interim target at 30,000 points remains intact but watch that trendline and momentum readings carefully for a correction, with the low moving average providing good support and uncle points for re-entries on this rally:
