As the Golden Week holiday in Japan presses on, all focus was on China today with the release of the latest PMI manufacturing print, coming in slightly lower than expected which sent the Australian dollar much lower as expected.
The Shanghai Composite rebounded slightly as a result, finishing 0.5% higher to 3078 points. In Hong Kong the Hang Seng Index has gone the other way by retreating nearly 0.6% to finish at 29700 points. This puts the recent bounce off of daily ATR support at the 29000 point level in doubt, but we’ve been in this sort of dip situation before and should still result in another retest of the 30000 point resistance level:
US and Eurostoxx futures are down slightly, with the four hourly chart of the S&P 500 showing retracement of last nights breakout above the September 2018 high which made for a new record high:
Japanese stock markets were closed while trading in the USDJPY pair was to the downside on risk aversion with the nascent bullish rising wedge pattern only fleetingly bringing any upside relief with a retracement back down to the low 111’s for a new weekly low:
Australian stocks retreated again, despite a fall fall in the Australian dollar with the ASX200 finishing 0.5% lower at 6325 points but still looking quite strong here. The Australian dollar has finished its oversold comeback as it flopped on the Chinese PMI print, back down to the low 70s as overhead resistance remains too strong:
The economic calendar continues tonight with some very Eurocentric and Euroimportant prints – namely the only unemployment figure that matters, Germany’s for April, then CPI and EZ-wide GDP for the first quarter. In the US its the consumer confidence release for April, so it’s all happening.