Archived IMT (2009.06.30)

The writing is on the wall for a well telegraphed sell-off in the Wednesday Asian session, looking for the NY selling to feed into the Nikkei and the Shanghai Composite (which in fact ended lower unlike Tokyo). Although Nikkei ended +175 pts (correction not -) at 9,958, futures currently calling for a -140 pts at the Wednesday open, suggesting more risk aversion trades in forex particularly dragging against CAD, AUD and NZD vs USD and to lesser extent against USD. USDJPY resilience partially explained by robustness in both currencies and broad reversal of USD shorts from previous sessions, but resistance stands at 97 right shoulder. USDCAD rose +100 pips from 1.1510, looking to breal 1.1640 trend line and onto 1.1740 top of channel. Extent of Asian sell-off depends on depth of selling in last 30-45 mins of NY session.