By Chris Becker
Markets are being pushed around by central bank speculation and a calming of the nerves surrounding the Saudi oil supply crunch with a surprise build in oil inventory cutting the recent gap higher in half for both WTI and Brent crude prices. The USD fell back against the majors with the Euro the biggest mover, dragging the Aussie higher with it. Its a subdued mood out there with stock markets ranging from small gains to tiny scratches as we all await the FOMC meeting.
Looking at the action on Asian markets yesterday, where the Shanghai Composite slumped to finish nearly 2% lower at 2979 points, breaking below the 3000 point barrier that had been building as support while the Hang Seng Index followed in suit, closing 1.2% lower at 26790 points, just breaking below weak support/former resistance at 27000 points. Momentum is now flatlining but still positive, so I’m watching the high moving average to come under further pressure here on the daily chart:
