See the latest Australian dollar analysis here:
A mixed session to start the week here in Asia, although dead cat’s are bouncing and rolling over here and there, the local market is soaring due to the pro-bank and pro-mining party getting voted in over the weekend. The Australian dollar is also on a tear post the election, although still remains below 70 cents, while gold has made another new daily low.
The Shanghai Composite has started the week poorly, staying below 2900 points and down nearly 1% going into the close, currently at 2856 while in Hong Kong, the Hang Seng Index is not doing much better, down 0.7% or so to 27740 points as the rollover to a new daily low seems complete for this dead cat bounce:
US and Eurostoxx futures are treading water at best with the four hourly S&P500 chart showing an inability previously to close at a new weekly high, still well below the 2900 point level but some support building at the 2860 point level:
Japanese share markets have advanced on a good Q1 GDP print, with the Nikkei 225 closing 0.25% higher to 21305 points helped along by a weaker Yen. The USDJPY pair gapped higher on the Monday morning open after a surge on Friday night, staying above the 110 handle but stalling just above tentative former trailing ATR resistance on the four hourly chart:
Australian stocks have done the best due to local issues – the financial sector up nearly 5% as bank share voters want more dividends and less tax revenue! Or something like that – mining stocks did well too for the same reasons with the ASX200 rocketing nearly 1.7% higher to close at 6476 points. This is despite a much higher Australian dollar which gapped back above the 69 handle this morning following the election, currently at 69.20 where it could advance a little higher as The City plays catchup to the news of another Morrison government:
The economic calendar starts the week with a few central bank speeches and the usual weekly Treasury auctions.