See the latest Australian dollar analysis here:
Asian share markets are literally treading water while currencies are the only movers as traders try to find their feet at the start of the trading week. There was a fly in the ointment for Aussie short sellers – the RBA – as Governor Lowe’s speech put a little boost under the beleaguered currency.
Chinese share markets are unchanged with the Shanghai Composite up exactly 1 point, still just above the 3000 point barrier while the Hang Seng Index has advanced 9 points, basically going nowhere to be at 28482 points. The daily chart is trying to building last weeks breakout with a lot of upside potential if the recent session highs nearer 28600 are broken:
Japanese share markets are up only slightly higher with the Nikkei 225 closing 0.13% higher at 21285 points. This is despite a relatively strong USJDPY pair which has gapped up a little on the usual Monday morning thin trade, but remains depressed here in the mid 107s:
The ASX200 is the best in the region, closing nearly a quarter of a percent higher at 6665 points, barreling in on new record highs again. This is despite the higher Australian dollar goosed by Governor Lower with the Pacific Peso pushing up above it nascent uptrend to the mid 69s and ready to break higher, although momentum is somewhat overbought:
S&P and Eurostoxx futures are flat with the four hourly chart of the S&P500 chart showing a desire to push higher after finally breaking through strong resistance at the psychologically important 2900 point level previously. This is a classic setup for another leg up higher:
The economic calendar starts the week with the German IFO survey plus the Dallas Fed manufacturing activity report, both interesting to weigh up against Friday night’s PMI prints.