See the latest Australian dollar analysis here:
The risk on mood has increased here in Asia with solid rises across most stock markets, although locally the ASX200 is dragging its feet. This is all due to the delay in Chinese tariffs, with bond yields rising and oil prices still under pressure post-Bolton “firing”.
The Shanghai Composite is making a comeback, currently up 0.3% to 3020 points while the Hang Seng Index started well before a late selloff is seeing it down 0.2% to just above 27000 points, as the long awaited pause in this overbought rally comes to fruitition:
Japanese share markets continue to fly higher, helped again by a weaker Yen the Nikkei 225 surging another 1% higher to 21817 points making another new daily high. The USDJPY pair accelerated up to and through the 108 handle but has come back slightly just as the City opens:
The ASX200 is still basically treading water, only up 0.2%% to recover its previous losses but not making much headway as the Australian dollar weighs, almost hitting the 69 handle again in an upbeat mood and looking ready to have another go tonight:
S&P and Eurostoxx futures are upbeat, with 0.2 to 0.4% gains predicted across the board as the S&P500 four hourly chart shows momentum building as it gets back over the 3000 point level again:
The economic calendar will focus squarely on the ECB meeting tonight, then a quick shift to the latest US CPI print, so watch out currency traders!