See the latest Australian dollar analysis here:
The weekend’s G20 meeting with the trade war truce between China and American has seen some big gaps up in risk assets, with Chinese stocks in particular rallying hard. The Australian dollar has been a big benefeciary, gapping up against all the majors and crosses, as has the Kiwi with the Yuan weakening considerably.
The Shanghai Composite is soaring, up nearly 3% to 2663 points going into the close, doing very well to arrest last week’s falls and gets back above the previous support level at 2600 points. The Hang Seng Index is up around the same or 2.7% to 27217 points, with an obvious gap higher above the previous support level and ATR trailing resistance at 26700 points:
US and Eurostoxx futures are up significantly as the risk on mood brightens with the daily S&P 500 futures chart suggesting a big break higher to previous significant resistance at the 2745 point level from several weeks ago (horizontal black line on the left):
Japanese stocks have put in a good day despite a stronger Yen, with the Nikkei 225 up nearly 1.4% to 22645 points. The USDJPY pair gapped a little bit higher and then lifted up towards the 114 handle but has reversed late in the afternoon to the previous lows at just above tentative support at the 113.20 level:
The ASX200 has come back strongly after the big falls on Friday, currently up 1.7% or nearly 100 points to 5764 after previously retreating below the previous 5700 point support area. The Aussie dollar gapped right above the previous two weekly highs, almost getting to the 74 handle before stabilising at the 73.60 level as it consolidates above this now important support level:
The economic calendar starts the week with the very closely watched ISM Manufacturing print in the US tonight.