See the latest Australian dollar analysis here:
The bounceback is getting a bit wobbly here in Asia with confidence not returning in full as expected. Japanese stocks are down while Chinese bourses are treading water, as local stocks are bid as the Australian dollar falls in the wake of a “surprise” lift in unemployment.
The Shanghai Composite is floating along here, currently up 0.25% to 2945 points while in Hong Kong, the Hang Seng Index is not doing much better, up only 0.15% or so to 28317 points. Momentum was clearly way oversold and is coming back to a swing play but there’s a lot of daylight overhead to fill with not much buying support as yet:
US and Eurostoxx futures are falling back in the wake of a poor close in Tokyo with both down around 0.3% as the four hourly S&P500 chart shows a desire to swing higher, but trailing resistance at 2890 points maybe too far a hurdle:
Japanese share markets are not able to withstand a stronger Yen, with the Nikkei 225 taking back the previous session gains to close 0.59% lower at 21062 points. The USDJPY pair has been pushed down slightly to mid 109’s as it fails to make any new daily high – watch the low moving average and former lows at the 109.30 for signs of an inversion:
Australian stocks have done well in the wake of the unemployment print with the ASX200 lifting 0.7% to be at 6327 points. This is all due to the Australian dollar which remains on a nice downtrend falling again to another new low and threatening the 69 cent handle proper:
The economic calendar is relatively quiet tonight with housing figures from the ‘States and not much else although there are a few ECB secondary speeches to keep an eye out for.