See the latest Australian dollar analysis here:
Some stability has returned to risk markets as bond yields rise slightly while the USD firms against commodity proxies and the Yuan proper. Going into the European session, Euro is selling off already while gold has retraced from its recent record high.
The Shanghai Composite has continued its little rebound to finish 0.3% or so higher to advance beyond 2800 to 2823 points while the Hang Seng Index is also moving higher, up 0.8% after yesterday’s rebound to finish at 25702 points. Not quite a weekly high, but a good effort nonetheless after selling off during most of the week, with the daily chart still spelling a lot of trouble ahead if it breaks below 25000 points proper:
Japanese share markets are just hanging on as Yen buying abates a little with the Nikkei 225 putting in a scratch session to finish at 20413 points. The USDJPY pair is starting to firm here after remaining in a tight band the last 24 hours or so and has the potential to breakout above the 106.40 level as volatility reduces to pre-breakout levels:
The ASX200 was the worst in the region, but only fell a handful of points to finish off a forgettable week at 6405 points, taking away the last 3 months of gains. The Australian dollar was lifting mid session but has retraced to remain below the 68 handle as it is still unable to get above last Friday’s highs, which still signals weakness ahead:
S&P and Eurostoxx futures are firming nicely, up 0.6% or so indicating more volatility ahead tonight as everyone watches the yield curve again. The S&P500 four hourly chart shows significant resistance at the 2890 point level to clear to turn this dead cat bounce around but I remain unconvinced:
The economic calendar finishes the week with the University of Michigan sentiment print and not much else. Have a good weekend!