See the latest Australian dollar analysis here:
Stocks are generally down across Asia with only local issues rising due to the fall in the Aussie dollar as the latest unemployment print undershot, sending interest rate expectations down with it. The risk off mood hasn’t been helped by a slip in Chinese industrial production numbers alongside retail sales.
Chinese stocks are diverging in fortunes with the Shanghai Composite bouncing back above 2900 points by climbing over 0.4% going into the close, currently at 2917 points. The continued chaos in Hong Kong is keeping things nervous on the Hang Seng Index which is down 0.8% to 26368 points. With price now well below trailing ATR support and the previous support/resistance zone a full retracement down to 25000 points could be warranted:
Japanese share markets remain in selloff mode with the Nikkei 225 closing 0.7% to 23162 points. Yen buying on the risk off trade is not helping with the USDJPY pair now cracking below the 109 handle and trailing ATR support as the trendline from the late October is definitively broken:
The ASX200 rebounded on the poor unemployment print, closing at 6735 points or 0.5% higher to get back above the very important resistance level at 6700 points. The bottom fell out of the Aussie dollar as the Pacific Peso flopped on the numberwang print, heading straight to the 68 handle – tonight’s session will be very interesting:
Both S&P and Eurostoxx futures are steady with the S&P500 four hourly chart showing price still above trailing ATR support, but continuing to track sideways at the end of last week’s highs as momentum remains poised for a breakout above 3100:
The economic calendar has a big one to watch out for – European GDP, followed by US initial jobless claims.