Macro Afternoon

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by Chris Becker

The trading week finally gathers pace here in Asia with the strong lead on Wall Street converting into broad gains across the risk complex. Gold is trying to have another go at its previous record high, slipping a few dollars as the four hourly chart exhibits a bearish rising wedge pattern (or Italian man starting an argument) currently at the $1974USD per ounce level with silver having re-engaged above the $24USD per ounce level:

In mainland China, the Shanghai Composite is having a near scratch session, closing only 0.2% higher at 3374 points, while in Hong Kong the Hang Seng Index is playing catch up with a big session, up over 2% to 25044 points. Japanese stocks are also continuing their bounceback, with the Nikkei 225 lifting 1.7% to 22573 points to another monthly high, still being pulled along by a higher USDJPY pair, although it has retraced slightly in the late session to be just below the 106 handle:

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The ASX200 is no longer showing any wobbliness (yes, that’s an official technical analysis term) finally re-engaging with the hopium buy addicts and soaring nearly 2% higher to be well above the 6000 point level, to close at 6037 points. Meanwhile the lack of action by the RBA in its latest meeting is seeing the Australian dollar lift off the floor to be back above the 71 handle after threatening weekly support:

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Eurostoxx and S&P futures are lifting, both up 0.3% or more, with the latter ready to make good on the BTFD crowd overnight, with the 3300 point level now under threat: