The good start to the trading week as stumbled already here in Asia with the fallout from last nights US ISM manufacturing print and growing concerns over COVID spilling over once again as equities pullback. Bitcoin is following the risk mood, struggling to gain traction after the false breakout to start the week as the four hourly chart shows momentum waning and ready to take out what was key support at the $38K level.
The Shanghai Composite is putting on the brakes, down 0.3% going into the close at 3455 points while the Hang Seng Index is taking back most of its previous gains, down 0.5% and currently at 26103 points. Meanwhile Japanese stocks are following the same path, with the Nikkei 225 closing 0.5% lower at 27629 points. The USDJPY pair has continued to deflate into line with its weekly downtrend, having making a new weekly low and ready to take out the 109 handle close below as momentum on the four hourly chart remains in the negative zone:
Australian stocks are the best performers, having looked through the do-nothing RBA meeting with the ASX200 only retreating some 0.3% to still remain well above the 7400 points level, closing at 7466 points. Meanwhile the Australian dollar has broken out to almost above the 74 handle on the back of the RBA meeting, although its finding staunch resistance there just as it did late last week before the Friday smackdown:
Eurostoxx and S&P futures are barely moving along with the four hourly chart of the S&P500 showing price gravitating around the 4400 point level as it looks to continue last week’s sideways dance:
The economic calendar continues tonight with the latest Redbook yearly print from the US but not much else.