23.08.22 Macro Morning
Chris Becker | Aug 23, 2022 12:00
Not a good night for the risk takers with Wall Street falling off the perch again following the falls on the Friday session. Risk markets continue to be spooked by the Fed pulling away – or filling up the punch bowl with something more bitter, which spilled over into a much higher USD as Euro finally broke through the parity barrier. The Australian dollar returned to its Friday night lows but did not extend the losses below the 69 cent level as commodity prices lifted slightly. Bond markets saw more selling with 10 Year Treasuries back above the 3% level while interest rate futures firmed a little, now up to a 65bps rise predicated at the next Fed meeting. Crude oil remains tenuous, with Brent crude lifting ever so slightly to get back above the $96USD per barrel level while gold lost even more ground, again rejecting the $1800 resistance level.
Looking at share markets in Asia from yesterday’s session, where mainland Chinese share markets had a solid start to the week with the Shanghai Composite up nearly 0.6% to close at 3277 points while the Hang Seng Index again went backwards, down 0.6%, to remain below the 20,000 point level at 19656 points. The daily chart is still showing considerable overhead resistance and daily momentum readings remaining into oversold mode as the moving average channel accelerates lower without any upside pressure. The May lows are coming under pressure with another break below the low moving average likely:
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