US stocks were lower across the board again overnight as the USD rose against the majors following a false breakout that saw Euro pushed down to the 1.07 handle, while the Australian dollar again met with support at the 69 cent level. 10 year Treasury yields lifted higher on poorer auction results, pushing well above the 3.6% level while the commodity complex saw oil prices stabilise after a three day lift higher with Brent crude retracing back below the $85USD per barrel level. Gold was hit hard by the surging USD after being unable to get back above the $1875USD per ounce level post the US jobs print last week, pulling back sharply to the $1860 level.
Looking at share markets in Asia from yesterday’s session where mainland Chinese share markets lifted strongly across the session with the Shanghai Composite up 1.2% to 3270 points while the Hang Seng played catch up at the close with a strong surge to finish 1.6% higher at 21624 points. The daily chart had being showing 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 has rolled over through ATR support with momentum crossing into negative territory but a possible corrective phase has not eventuated with support clearly evident at the 20000 point level:
Japanese stock markets pulled back however with the Nikkei 225 down 0.3% at one stage before a late surge saw a scratch session to finish at 27584 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 remains unable to clear the 27500 point level. Daily momentum has reverted out of overbought mode and could be suggesting a slide back below the low moving average next but support is holding here:
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