See the latest Australian dollar analysis here:
Stocks are falling across the region as tariff concerns over the Chinese trade deal mount alongside increased tensions in Hong Kong. The RBNZ lift its interest rate unchanged which saw the Kiwi leap higher while the Aussie dollar continues its slow deflation as the USD firms against the majors.
Chinese stocks are really on the back foot now, with the Shanghai Composite just holding on above 2900 points by being down 0.5% going into the close. The chaos in Hong Kong is not helping traders there with the Hang Seng Index gapping down and then some, selling off most of the day to be down over 2% to 26511 points. Price has completely cast aside trailing ATR support and the e previous support/resistance zone that was cleared before this blowoff rally started:
Japanese share markets are also in selloff mode as the prospect of a China/US trade deal stumbles with the Nikkei 225 taking back all of its previous gains to be down 0.7% to 23340 points. Yen buying on the risk off trade is not helping with the USDJPY pair hovering just above the 109 handle as momentum wanes, with the trendline from the late October low broken:
The ASX200 is also falling quickly, down 0.8% to close at just a smidgen under 6700 points and unable to clear that very important resistance level. The lower Aussie dollar hasn’t helped agaian as the Pacific Peso continues to struggle to get any traction although the pace of decline is falling with a point of control forming just under the mid 68 cent level:
Both S&P and Eurostoxx futures are falling slightly with the S&P500 four hourly chart showing price still holding on above trailing ATR support, but tracking sideways at the end of last week’s highs as momentum remains poised:
The economic calendar is packed tonight with German, UK and US CPI prints for October.