By Chris Becker
The latest core inflation figures from the US suggest a less robust economic boom than expected with the USD falling as a result as bond yields lifted across the curve. While the broader S&P500 made a new record high it was only just eked out, with European markets also not as bullish due to a higher Euro acting as a brake. Today’s Chinese manufacturing PMI print may take the wind out of the sails of the very weak recovery in the Australian dollar.
Looking first at the Asian session yesterday with the Shanghai Composite starting the week poorly 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:
