See the latest Australian dollar analysis here:
Asian stock markets have started the week on a strong note despite the slump on Wall Street on Friday night, namely because of the weaker Yen sending Japanese stocks higher and a firm Chinese PMI print. The USD has weakened against Aussie and Kiwi which have gapped higher on the usual Monday morning open while gold is just holding on to its meagre Friday session gains.
The Shanghai Composite was up nearly 0.4% on the back of the PMI print, but has closed with a scratch session at 2872 points while the Hang Seng Index is trying to recover from its Friday losses, up 0.4% to 26461 points. The daily chart clearly shows that inversion and its going to take a lot more upside and positive momentum to get it back on track above 27000 points:
Japanese share markets did the best in the region, namely on the back of a much weaker Yen throughout the session with the Nikkei 225 closing 1% higher to 23538 points, as it starts to really build above daily support at the 23000 level. The USDJPY pair gapped slightly higher on the Monday morning open and then advanced swiftly, taking out the previous week high and almost getting to the 110 handle:
The ASX200 finally pushed above a scratch session, eking back its Friday losses to close 0.2% higher and remaining well above the 6800 points barrier. The Aussie dollar is finding some life here after a volatile Friday night session, continuing its bounce off last week’s extreme low at the 67.70 level as trader’s prepare for tomorrows RBA meeting:
Both S&P and Eurostoxx futures are confident here with the S&P500 four hourly chart showing an intention to try to match the pre-Thanksgiving high from last week and advance to a new record high:
The economic calendar overnight starts the week with some big ones, with ECB President Lagarde testifying to the European Parliament, then its the US ISM manufacturing print for Novmeber. Look out tomorrow for the RBA meeting as well…its ramping up!