The US Federal Reserve lifted rates by 0.5% following the softer than expected US inflation print which upset Wall Street a little overnight even though it was largely expected. USD was basically unchanged against the majors in the end, with the usual intrasession volatility with the Australian dollar dead flat above the 68 cent level and still at a new monthly high. US Treasury yields dropped again with the 10 year pushed down to the 3.4% level while the commodity complex saw oil prices lifting higher, with Brent crude pushing up towards the $83USD per barrel level as gold remained back above the $1800USD per ounce level in a wild ranging session.
Looking at share markets in Asia from yesterday’s session where Chinese share markets are again moving nowhere with the Shanghai Composite staying below the 3200 point level, finishing flat at 3176 points while the Hang Seng Index has moved upwards, gaining 0.4% to 19647 points. The daily chart continues to show a lovely breakout with more potential upside although price momentum and price action is definitely rounding off. Watch support to remain strongly defended at the 17600 area with the low moving average to come under pressure next as overhead resistance – the long tails above – is building:
Japanese stock markets put in equally strong returns despite the stronger Yen, with the Nikkei 225 also closing 0.7% higher at 28156 points. Futures are indicating a flat start today with the mixed lead on Wall Street not helping push through heavy resistance at the 28400 point level which remains the key area to beat to get price back on trend. The rollover into short term ATR support at the 27500 point level is trying to convert into a proper rally but momentum is nowhere near overbought yet so watch for a close above the high moving average:
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