Markets inverted their risk profile today in Asia with Chinese stocks selling off as the Yuan surges against USD, Japanese markets tread water and local shares lift strongly in line with Wall Street overnight. Currency markets are poised for tonight’s Federal Reserve meet with gold coming back slightly as the symmetrical triangle on the four hourly chart begins to close up in response, now at the $1958USD per ounce level:
In mainland China, the Shanghai Composite has given back yesterday’s advance to be down nearly 0.7% to 3273 points while in Hong Kong the Hang Seng Index is doing the same, down over 0.3% to 24661 points. Japanese stock markets are holding on despite a much stronger Yen with the Nikkei 225 barely unchanged at 23475 points as the USDJPY pair looks set to breakdown to a new weekly low (solid black horizontal line) at the 105 handle:
The ASX200 was the odd one out, soaring 1% to be at 5956 points while the Australian dollar is remaining firm and steady in preparation for the FOMC meeting, still at a two week high and just above the 73 handle against USD:
Eurostoxx and S&P futures are relatively flat with the S&P500 four hourly chart continuing to climb up to key resistance at the 3420 point area, but still yet unable to crossover:
The economic calendar has two big ones to watch out for – US retail sales and the latest FOMC (aka the Money Printer’s Alliance) meeting.
PS: 48 days til the US Presidential election. I’ll stop the cartoons/memes then. Maybe.