See the latest Australian dollar analysis here:
A much better day here in Asia as Yuan stabilises and risk sentiment improves from overnight markets. The commodity proxy currencys – Aussie and Kiwi – are in recovery mode as well, but interestingly, bond markets remain somewhat spooked with Treasury yields reaching a new low again.
Meanwhile, the Shanghai Composite is finally playing catchup, bouncing nearly 1% higher to 2794 points while the Hang Seng Index is putting a similar lift, up 0.7% to 26186 points. This keeps it above the January lows at 25000 points and finally putting in a new daily high, but still in trouble:
Japanese share markets are up slightly with the broader TOPIX stalling while the Nikkei 225 lifted by 0.3% to 20593 points, taking back the previous session losses. The USDJPY pair remains anchored at the 106 handle throughout the session with a descending triangle forming on the four hourly chart again, as it remains unable to clear a lot of resistance overhead:
The ASX200 was again one of the best movers despite a higher Aussie dollar, lifting 0.7% higher to 6568 points. The Australian dollar has also comeback after previously falling in sympathy with the Kiwi, cut down by a very dovish RBNZ yesterday, with the former now threatening the 68 handle in a strong swing move higher:
S&P and Eurostoxx futures are strengthening even more, currently up at least 1% going into the European open with the S&P500 four hourly chart showing a tentative bottom as it bounces off 2800 points and heads for the 2900 point barrier:
The economic calendar is relatively quiet in the northern hemisphere tonight, so focus will be on bond markets as always.