See the latest Australian dollar analysis here:
Here we go again! Its a real mixed day across Asia as tensions in Hong Kong jump, while inaction and bad messaging from Trump and the Chinese on the looming trade deal is seeing risk appetite erode across most of the complex. The USD is firming against most of the majors, and in particular Yuan but also the Aussie dollar.
Chinese stocks have fallen the hardest with the Shanghai Composite down nearly 2% going into the close, off to 2907 points while the Hang Seng Index is doing even worse, down by 2.8% to 26886 points and wiping out all of the previous week and bit breakout rally. This could get ominous as price retraces below the previously clear resistance level at 27000 points:
Japanese share markets are continuing to tread water with the Nikkei 225 putting in a small scratch session by falling 0.2% or so to 23331 points. This is due to steady Yen buying here on the weekend gap open with the previously well overbought USDJPY pair now breaching below the 109 handle as momentum starts to flip to the negative side, although not yet below the midweek breakdown previously:
The ASX200 has finally pushed higher and was the best in the region, lifting some 0.7% to 6772 points, matching the previous highs and poised to break higher – or is this a bull trap? The lower Aussie dollar has helped, with the Pacific Peso ready to start the week with another new by pressuring under the mid 68’s:
Both S&P and Eurostoxx futures are down with the S&P500 four hourly chart showing price starting to pressure the lower band of the trend channel with ATR support at 3065 points the uncle point to watch tonight:
The economic calendar starts the week with 3Q UK GDP plus a couple of ECB wonk speeches to keep an ear out for.