By Chris Becker
A big surge in USD overnight took the wind out of US stocks with Wall Street’s anticipated earnings season looking at a shaky start. The delayed Brexit result has seen volatility in Pound Sterling reduce, but the German government’s slashing of growth forecasts took the floor out of Euro. Today’s RBA Financial Stability Review could reinforce the falls of the false breakout in the Aussie dollar.
Looking first at the Asian session yesterday where the Shanghai Composite closed 1.6% lower to just below 3200 points, reacting poorly to the expected CPI print, while the Hang Seng Index has fallen 0.9% to 29839 points, unable to beat the recent steady state of daily highs above the 30,000 point level. There is a growing chance of a rollover here, possibly down to the recent resistance level that was cleared at 29500 points:
