See the latest Australian dollar analysis here:
Is it all systems go on risk markets again? Not quite, but it seems that sanity may yet prevail with potential relief from the trade war, albeit speculative that Trump may pullback some of the announcements. Stocks across the region rallied from relief more than anything with the USD still mixed against the majors
The Shanghai Composite put in a positive session – surprise, surprise, rising 0.3% but still well below 3000 at 2918 points. The Hang Seng Index did even better, rallying almost 1% but also below its own resistance at 30000 points and still below the long held lower trend line here on the daily chart:
S&P futures are up alongside Eurostoxx, following on from the BTFD effort last night, but still nowhere near out of the woods:
Japanese stocks performed the best with the Nikkei 225 almost taking back all of the previous session, closing about 1.2% higher at 22555 points. This was all due to a selloff in Yen on the safe haven reversale with the USDJPY pair pipping back above the 110 handle, and getting back into the wide trend channel:
The ASX200 is again defying the odds, all on a bank short cover exercise really, finishing over 1% at 6172 points, holding very strongly now above 6100 again. The Aussie dollar has had a very small relief rally but is still a smidgen below the 74 handle with overhead ATR resistance at 74.30 or so the goal to meet:
The data calendar is again quiet tonight with US DOE oil inventory and existing home sales data the only events of note, although the ECB forum in Portugal is still ongoing.