Friday night’s US jobs report was a huge lift for USD, outperforming everything else in the risk complex with Wall Street dropping as a result of the “WOW” number and upward revisions of previous prints. European markets had already baked in a fairly good finish to the trading week before Euro was slammed back down below the 1.08 handle, taking the Australian dollar with it to a new two week low around the 69 cent level. 10 year Treasury yields pushed higher to almost crack through the 3.5% level while the commodity complex saw oil prices retrace sharply again, with Brent crude pushing below the $80USD per barrel level. Gold was flummoxed by the NFP print, after recently being unable to hold on to its new monthly high with a big loss down to the $1865USD per ounce level.
Looking at share markets in Asia from Friday’s session where mainland Chinese share markets fell into the close with the Shanghai Composite down 0.7% to 3263 points while the Hang Seng did worse, off by more than 1.4% to finish at 21660 points. The daily chart had shown a nice breakout with daily momentum well overbought but unable to breach the 23000 point level as it rolled over most of last week. Price action is now poised right on ATR support with momentum about to cross into negative territory:
Japanese stock markets ended the week in a more positive mood with the Nikkei 225 closing 0.3% higher at 27509 points. After bottoming out at the 25000 point level the recent positive correlation performance with Wall Street was helping lift price action back to the November highs, but unable to clear the 27500 point level. Clearing daily ATR resistance and getting daily momentum back into overbought mode should set up a further move higher to the 28000 point level next:
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