Macro Morning

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By Chris Becker 

Risk markets continue to stumble around in the new year with the latest US economic data surprising slightly to the upside, pushing the USD higher against almost everything, but in particular the Australian dollar which crashed to a monthly low. Tensions over Iran have almost dissipated – the calm before the storm – while oil prices cooled slightly, everyone’s favourite crypto currency jumped the $8000 barrier again.

Looking at Asian share markets yesterday where the Shanghai Composite pushed higher after its recent scratch session, closing up 0.6% to 3104 points, while the Hang Seng Index gained 0.3% to 28322 points, taking back some of its recent losses and providing a more sustainable trendline after late last week’s exuberance. The daily chart shows price action getting back near, but not above the high moving average, but momentum is still skirting along suggesting that price should be supported from here:

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