See the latest Australian dollar analysis here:
Japanese stocks are weighing on Asian risk taking as selling exhaustion is seeing Chinese markets both on the mainland and in oppressed Hong Kong surge higher. The USD remains under pressure although a lack of buying in Aussie dollar is seeing the local currency fall short of the 68 cent level.
Chinese stocks have continued their bounceback, with the Shanghai Composite closing nearly 0.9% higher to 2934 points while the Hang Seng Index has again surged higher, this time up nearly 1.5% to close at 27075 points. Price is now back above previous trailing ATR support and the resistance zone at 27000 points in a sign that not all is lost in the once peaceful territory:
Japanese share markets were unable to advance due to a stronger Yen throughout the session as the Nikkei 225 closed nearly 0.5% lower to 23292 points. The USDJPY pair was pulled back today in swift reversal from overnight as negative momentum weighs on the USD, pushing it back below previous ATR support, now almost resistance at the 109 handle:
The ASX200 was able to make some gains however, in line with Chinese stocks, surging nearly 0.7% and this time able to close above the 6800 level. The Aussie dollar fell somewhat, hovering again just below the 68 handle here going into the City open, as it remains unable to join other undollar assets as the USD weakens:
Both S&P and Eurostoxx futures are higher, where we could see some actual gains despite last night lacklustre affair with the S&P500 four hourly chart still showing a continued breakout above overhead resistance at the 3100 points level. While the longer term charts suggest a continuation, momentum is considerably oversold and ripe for a pullback on any whiff of bad news:
The economic calendar is again quiet tonight with no major releases.