End of month window dressing saw the risk complex pull back overnight with mixed results across European shares and Wall Street as interest rate bets continued to rise. The USD initially lost ground against the major currency pairs before fighting back as the latest consumer confidence figures undershot, with the Australian dollar pulled back near its new monthly low above the 67 cent level. The commodity complex saw oil prices lift slightly on inventory data with Brent crude still holding above the $82USD per barrel level while gold lept out of its depressed funk, managing to lift up through the $1830USD per ounce level.
Looking at share markets in Asia from yesterday’s session where mainland Chinese share markets fell initially but then surged going into the close with the Shanghai Composite up more than 0.6% to 3279 points while the Hang Seng went the other way to finish 0.8% lower at 19785 points. The daily chart is showing this rollover slowing down somewhat although price action is continuing well below previous ATR support as momentum remains in oversold territory. Watch now for support at the 20000 point level to come under pressure:
Japanese stock markets were mixed with the Nikkei 225 up slightly to 27445 points. A bounceback is still in effect after last week’s rollover with daily momentum getting back into the positive zone with support clearly evident at the 27000 point area. Futures continue to be mixed given the lack of an overnight lead which could lead to a further lack of confidence with short term resistance at the 27400 point level needing to be cleared:
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