See the latest Australian dollar analysis here:
The carnage from Wall Street overnight has not been exactly translated into the same falls here in Asia, but it’s certainly sent volatility higher as the fallout from the US/China “trade deal that’s not a deal”.
The Shanghai Composite is down 0.5% to 2651 points, still remaining above the previous support level at 2600 points, digesting the volatility quite well. The Hang Seng Index has retreated a lot further however, down 1.6% to 26800 points, barely hanging on above the previous support level and ATR trailing resistance at 26700 points:
US and Eurostoxx futures are steady going into the London open, but the four hourly S&P 500 futures chart shows a market poised to fall even further tonight if psychological support at 2700 points is taken out:
Japanese stocks have fared relatively well given the surge in Yen overnight, with the Nikkei 225 closing only 0.5% to 21919 points, recovering as Yen sold off slightly during the session. The USDJPY pair has bounced off the previous session lows to pip just above the 113 handle, but this looks tenuous at best with daylight below:
The ASX200 continues to retreat on the risk off mood, closing 0.7% lower to 5668 points, unable to hold on to the tentative 5700 point support area. The Aussie dollar has slumped completely as well as the GDP print undershot today, falling straight through the 73 handle and back below the last two week’s resistance level at 73.30:
The economic calendar has two major releases to watch tonight, first the Canadian central bank meeting, then the US non-manufacturing ISM print.