See the latest Australian dollar analysis here:
A bit of hope and optimism is sneaking into Asian share markets today following the reversal on Wall Street overnight, although continued protests in Hong Kong are weighing locally. Safe havens are still getting a bid, with gold and Yen both rising while Treasury yields are falling.
Chinese stocks have split with the Shanghai Composite taking back its previous losses to close 1% higher and now back above 2900 points while the Hang Seng Index has retreated slightly, down 0.3% to 25608 points. Price remains under pressure, still well below the low moving average on the daily chart, and looks set to return to the terminal low just below 25000 points:
Japanese share markets have advanced despite a rise in the domestic currency with the Nikkei 225 clawing back half its previous losses to be up 1% to 20456 points. The USDJPY pair failed to gain traction on the Tokyo open and has now fallen back below its low moving average on the four hourly chart to be just above the mid 105’s – this looks ominous for a full inversion:
The ASX200 had a robust session, gaining nearly 0.5% to close at 6471 points, but still looking very weak on all timeframes. The Australian dollar continues to fail at any passably good rally, falling straight back to the mid 67’s and unable to make any new session highs:
S&P and Eurostoxx futures are off slightly so the confidence isn’t fully back yet. The S&P500 four hourly chart shows price hovering in the midpoint of the moving average bands, with price unable to get back above the 2880 point level:
The economic calendar continues tonight with the double whammy: US consumer confidence and the latest house price updates.