See the latest Australian dollar analysis here:
Asian stock markets remain in light volume mode, which always increases the risk of volatility, especially to the downside where selloffs were the order of the day. The USD was still weaker, in particular against gold which ran up to a three month high above $1520 USD per ounce.
The Shanghai Composite is up just a handful of points to consoldiate above the long held 3000 point resistance level, while the Hang Seng Index took back its previous gains to close half a percent lower at 28189 points as it remains above the previous October highs:
Japanese share markets were closed while the USDJPY pair gapped lower again and continued to selloff, breaking down below the 109 handle and looking hugely oversold going into the City open:
The ASX200 had a shocker to finish the year – mainly due to end of year window dressing – falling by nearly 2% to closed out at 6684 points, while the stubbornly high Australian dollar is peaking above the 70 handle, where it looks set to break and then get into seriously overbought territory:
Both S&P and Eurostoxx futures are flat going into the European open with the S&P500 four hourly chart showing price poised here above the former resistance level at 3200 points as the bullish trend channel was broken overnight, where this stretched market could retrace further tonight in a truncated session:
The economic calendar is obviously quite stark tonight given its the end of the year!
See you next trading year!