See the latest Australian dollar analysis here:
A much more optimistic mood here in Asia today with almost all stock markets putting on gains, with the ASX200 advancing to a new record high. Pound Sterling continued to fall as the realisation of no-negotiating let alone no-deal seems to be de jeure for the Johnson hard Brexit, while the Australian dollar continued its own meltdown as traders await tomorrow’s FOMC meeting.
The Shanghai Composite came back stronger in today’s session, closing nearly 0.4% higher to 2952 points while the Hang Seng Index staved off another new daily low, climbing just 0.2% to finish at 28167 points. This puts it somewhere near but not above the recent support level as this market teeters for another breakdown:
Japanese share markets were much more robust, taking in the BOJ meeting with Governor Kuroda soothing concerns on inflation with the Nikkei 225 closing 0.4% higher to 21709 points despite a slightly stronger Yen. The USDJPY pair fell back to the mid 108’s before the meeting but has recovered and looks set to have another go at the weekly resistance level above at the 108.90 level:
The ASX200 is loving the mood with no bears left to stand in the way, putting on a record high to close 0.3% higher at 6845 points. Here comes 7000 the uberbulls say! The Australian dollar is flatlining again, hovering just above the 69 handle before breaking below going into the City open and looking set to return to its 68.50 recent low:
S&P and Eurostoxx futures are down 0.1% going into the European session with the S&P500 four hourly chart displaying a possible double top pattern that could be morphing into a bearish rising wedge as price hovers just above the previous high near 3020 points:
The economic calendar has three big releases tonight, first its the German July CPI print, then US PCE core spending and Consumer Confidence figures, both important in dictating where Wednesday’s FOMC meeting will go.