Asian share markets remain on the backfoot can continue to follow the risk-off mood with falls across the region as the USD remains strong against all the majors, except the Australian dollar which has remained resilient despite a slew of bad economic prints today.
The Shanghai Composite has closed 0.3% lower but is still clinging above 2900 points, while the Hang Seng Index has closed about 0.4% lower to 27133 points, unable to arrest the recent decline. The daily chart still shows a deceleration pattern with a target at the 27000 point level but sentiment and momentum is still against it:
While Asian stocks are off, S&P and Eurostoxx futures are up about 0.5% or so with the four hourly chart of the S&P500 chart suggesting a very slim chance of a bottom here, but breaking below key terminal support level at 2800 points still signals the completion of a very bearish head and shoulders pattern on the longer term charts:
Japanese share markets are also off with the Nikkei 225 closing 0.3% lower to be just below 21000 points looking in a very weak position and restarting its corrective phase. This is despite a bounceback in the risk-on correlated USDJPY pair which is pushing up higher toward the 110 handle after recently making a new weekly low but there’s a lot of resistance overhead:
Australian stocks are the worst in the region with the ASX200 falling another 0.7% to close below previous support at 6400 points. The Australian dollar has blipped higher despite the poor capex numbers, breaking just above the high moving average to get to the 69.30 level in a very resilient move:
The economic calendar has a big one tonight – first quarter GDP for the US followed by the advance goods trade balance print.