Macro Afternoon

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Asian stock markets mixed given the minor pullback on Wall Street overnight as risk sentiment shifts in its collective seat getting ready for what could be a volatile US earnings season, with Microsoft the first disappointment. Currency markets are in the main going against King Dollar with Euro holding above the 1.09 handle while the Australian dollar surged on the latest outsized inflation print. Meanwhile oil prices are pushing lower with Brent crude retracing back to the $86USD per barrel level as gold pulled back from its overnight high’s currently just below the $1930USD per ounce level:

Mainland and offshore Chinese share markets are closed for Lunar New Year holidays this week. Japanese stock markets are still the front runners with the Nikkei 225 closing 0.5% higher to 27425 points with the USDJPY pair pushing up slightly yet remaining somewhat depressed here at the mid 130 level, wanting to breakout but not finding the next kick:

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Australian stocks were the odd ones out as the response to the surge in local inflation disappointed expectations, with the ASX200 finishing 0.3% lower at 7468 points. The Australian dollar leapt well above the 70 cent level to almost cross the 71 handle on the CPI print with a new weekly and monthly high in the making:

Eurostoxx and US futures are drifting lower as the S&P500 four hourly chart shows price action wanting to hold above the psychologically important 4000 point zone but slipping here. Short term momentum has retraced from formerly overbought readings with resistance still not cleared here:

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The economic calendar includes the latest German IFO survey, the Canadian central bank meeting and latest US mortgage data.