See the latest Australian dollar analysis here:
Asian stocks basically moved together today with solid gains across the region, save Australia as local stocks were pushed down by a higher domestic currency, while gold almost hit $1350USD per ounce.
The Shanghai Composite is tracking well, up 0.2% to close at 2761 points as its bear market rally continues. The Hong Kong Hang Seng Index has bounced back with a solid move higher, closing up 0.9% to 28470 points. This is a clear new daily high after clustering for awhile around the 28500 resistance level, so all the stops should be out for a continuation rally:
US and Eurostoxx futures are up slightly in line with other risk assets with the S&P 500 looking to build and break above the 2800 point level the target this week:
Japanese stock markets well taking the positive Wall Street lead higher, with the Nikkei 225 closing up 0.6% to 21431 points, getting back above key resistance that had been broken briefly last week. This was helped by a much weaker Yen with the USDJPY pair surging up to but not through the 111 handle after a bullish, but see-saw session overnight. The next target here is last week’s highs and above trailing ATR resistance:
The ASX200 was the worst in the region, falling nearly 0.2% and closing at 6096 points, retracing back below the key 6100 point resistance level. The Australian dollar held on to the reversal from overnight, staying above the mid 71s as the risk correlation kicked in again. Note the series of higher highs and higher lows on each move in volatility in the last two weeks – the bulls are coming back:
The economic calendar continues tonight with the latest Eurozone consumer confidence figures and then the release of the recent FOMC meeting minutes.