See the latest Australian dollar analysis here:
Despite the positive lead from Wall Street, Asian markets are very cautious going into the G20 summit this weekend in Osaka, with traders awaiting the foot in mouth US President to probably foul up the talks. The USD has barely moved, while the Aussie has briefly peeped over the 70 cent level as local stock traders take profits going into the weekend.
The Shanghai Composite has been unable to turn its recent bounce into a sustained trend, slipping almost 0.6% to be well back below the 3000 point barrier while the Hang Seng Index has fallen half a percent to 28476 points. This is disappointing given that the daily chart was a presaging a breakout following the recent small dip after almost making a new daily high previously:
Japanese share markets were very cautious given the mild rally in Yen overnight with the Nikkei 225 falling around 0.2% to finish a lacklustre week at 212758 points. The USJDPY pair has stabilised following last night’s retracement from the dominant downtrend line (black sloping line) and will probably oscillate between the moving average band tonight:
The ASX200 had a very poor session to finish the week, falling 0.7% to close at 6618 points in late afternoon profit taking across the banks and miners. The Australian dollar is pushing higher having now breached the 70 handle – just – going into tonight’s session in what has been a very low volatile and nice uptrend:
S&P and Eurostoxx futures are both flat reflecting the cautious mood going into this weekend’s G20 summit with the four hourly chart of the S&P500 chart showing a very small retracement back to a point of control nearer 2940 points:
The economic calendar concludes the week with the latest EZ wide CPI print while we get the first step of the next US GDP print, personal consumption expenditure. Its the G20 summit this weekend and I’ll see you all next week as I step in for Leith on holidays.