Finally a full session here in Asia as Japanese trader’s came back from the Golden Week as risk markets continued to react to the Trump/China trade battle. Meanwhile, the RBA meeting came and went with almost no change as the stubborn boffins at Martin Place continued to put their heads in the ground, sending the Australian dollar skyward.
The Shanghai Composite has not fought back strongly, closing about 0.6% higher to 2925 points after falling nearly 6% in the previous session. In Hong Kong, the Hang Seng Index is up an equal amount, closing 0.7% higher to 29390 points, with price just clawing on to the previous local support at the 29000 point level:
US and Eurostoxx futures are mixed with the four hourly chart of the S&P 500 showing a hesitation to get back to the previous highs as price remains just above the previous terminal resistance level at 2900 points:
Japanese share markets finally reopened after their long The Golden Week holiday, with the Nikkei 225 closing 1.5% lower in a big catch up play but not yet wiping out the dominant uptrend. Not so with trading in the USDJPY pair which fell in quick succession to the 110.60 level sending a clear risk off indicator as trailing resistance overhead and momentum remaining negative:
Australian stocks fluttered along taking the RBA meeting in its stride with the ASX200 only lifting 0.1% or so to 6295 points. The Australian dollar launched like a rocket on the stubborn hold from the RBA, bursting through the 70 handle, overhead resistance and the historical low (the solid black horizontal line). But does this mean the downtrend is over?
The economic calendar is relatively quiet with a series of secondary releases, namely US consumer credit and EU Commission forecasts.