See the latest Australian dollar analysis here:
Asian stock markets haven’t reacted at the same level as Wall Street’s falls overnight, with some moderate buyers stepping in as Treasury yields lift a little higher. Gold fell back towards the $1400USD per ounce level after its recent epic ride while Bitcoin put on more gains as its trajectory goes SpaceX like!
The Shanghai Composite is treading water, down a few points as it hovers below the 3000 point barrier while the Hang Seng Index has bounced slightly, up 0.2% to 28230 points. The daily chart is stabilising a little bit hit at the 28000 point level and may still retrace further but there is still support building:
Japanese share markets fell again despite a weaker Yen throughout today’s session with the Nikkei 225 falling 0.5% to a weekly low at 21086 points. The USJDPY pair has bounced back off the mid 106’s after falling sharply yesterday and maybe setting up here for a swing higher, but will require more positive risk sentiment first:
The ASX200 had a much milder selloff than expected, losing only 0.25% to 6640 points. The Australian dollar is pushing higher following the RBNZ hold at its meeting this morning as the AUDNZD almost hit a monthly low. This looks like a concerted move higher with the Kiwi with the 70 handle the short target:
S&P are steady while Eurostoxx futures are down about 0.3% with the four hourly chart of the S&P500 chart showing a hesitation to drop below the previous breakout point at 2920 points. Last night saw it fall below monthly support at 2940 so this is tenuous – watch out below:
The economic calendar is busy tonight, starting off with the BOE Governors having a chin wag as the market opens in The City, then the one-two punch of US durable goods and trade balance prints. Finally there’s the DOE inventory report plus some Treasury auctions to watch as the bond market heats up.