The solid finish on Wall Street on Friday night has translated into mixed sentiment here in Asia with Chinese stocks retreating on the mainland, while Japanese bourses were closed and the ASX200 fell back slightly. A similar mixed picture with currencies and undollar assets with gold retreating following its surge on Friday while the Australian dollar kept up its mild swing play higher to remain above 70 cents.
The Shanghai Composite has started the week out again remaining below the 3100 point level by falling nearly 0.8% to 3062 points. In Hong Kong however the Hang Seng Index has gone the other way by putting on an equal amount to finish at 29852 points. This continues the nascent bounce off of daily ATR support at the 29000 point level and could result in another retest of the 30000 point resistance level:
US and Eurostoxx futures are up slightly, with the four hourly chart of the S&P 500 suggesting a final breakout above the September 2018 high which was staunch resistance all of last week:
Japanese stock markets were closed for another holiday (probably all watching how the Night King d…) while trading in the USDJPY pair was muted as a possible bullish rising wedge pattern tries to appear in the four hourly chart which price still remaining at a weekly low:
Australian stocks retreated slightly on the rise in the Australian dollar with the ASX200 finishing 0.4% lower at 6359 points but still looking quite strong here. The Australian dollar is continuing its oversold comeback as it claws its way back from the recent monthly lows at the 70 handle, but there’s limited upside from here in my opinion:
The economic calendar starts the week with the personal consumption expenditure component of US GDP for the 1st quarter plus a speech by BOE Governor Mark Carney.