Macro Afternoon

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Outside local stock markets, the rest of Asia is bullish coming out of the Friday night play on overseas markets, where risk taking remains strong as Wall Street reaches a new record high – again. The USD remains weak against most of the majors although gold is struggling to find buyers while the Aussie dollar is also unable to gain momentum from its Friday breakout.

Chinese stocks have started the week in a much better state with the Shanghai Composite playing closing nearly 0.5% higher to 2914 points while the Hang Seng Index has leapt 1% to be at 26612 points. Price is still well below previous trailing ATR support and the previous resistance zone but no new daily low in three sessions is keeping the selling at bay:

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Japanese share markets also advanced with firm conviction, despite a flat Yen during the session as the Nikkei 225 closed nearly 0.5% higher to 23416 points. The USDJPY pair was flat today after its mild breakout on Friday night with momentum still not yet position despite price being above previous ATR support, now almost resistance at the 109 handle:

The ASX200 was the odd one out, dropping nearly 0.5% and unable to get back above the 6800 level, despite risk-on elsewhere, closing at 6766 points. The Aussie dollar was largely unchanged from its Friday night mini-surge with the Pacific Peso just hanging on above the 68 handle here going into the City open, as this swing move looks nearly finished already:

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Both S&P and Eurostoxx futures are up slightly, holding on to their gains from Friday night with the S&P500 four hourly chart clearly showing a lovely breakout above overhead resistance at the 3100 points level. While the longer term charts suggest a continuation, momentum is considerably oversold and ripe for a pullback on any whiff of bad news:

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The economic calendar starts the week slowly as we reach the mid part of the month, with just a couple of ECB wonky reports and speeches to look out for tonight.