See the latest Australian dollar analysis here:
Stocks in Asia have pushed higher with the USD sold off against the undollars as traders readjust to the Fed’s dovish stance following Fed Chair Powell’s testimony to Congress last night. Gold is soaring above $1400USD per ounce again while the Australian dollar is having another push to get back above 70 US cents.
The Shanghai Composite is still unable to get traction, treading water to be up only a handful of points, currently at 2916 going into the close. The Hang Seng Index however continues its come back with a solid 1% rise, currently at 28490 points, just below the previous set of highs at 28500 as it bounces off support at 28000:
Japanese share markets are doing well despite a much stronger domestic currency, with the Nikkei 225 lifting nearly 0.5% to be at 21630 points. The USJDPY pair remains below the 108 handle after its swift reversal overnight, more on USD weakness than Yen strength following Powell’s testimony. The next target is last weeks lows at the 107.50 level:
The ASX200 has also bounced back by soaring above the 6700 point level for a record high, up 0.5% to 6710 points, with bank stocks largely laughing off APRA’s wet lettuce capital charges. The Australian dollar continues to bounce following the reversal last night, barreling in on the 70 handle and above last week’s intrasession low:
S&P and Eurostoxx futures are up with the S&P500 four hourly chart suggesting a break above the key psychological 3000 point barrier as the market goes all in on the Powell Put:
The economic calendar has a few ECB wonk speeches to watch before the latest US CPI print and initial jobless claims.
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