See the latest Australian dollar analysis here:
Asia stocks continue to drop as economic fears surrounding the Chinese coronavirus continue to mount alongside the growing number of official cases. Forex markets are relatively tight with the Kiwi dropping slightly on the announcement of a new election, while Bitcoin is fast approaching the $9000 mark:
Japanese share markets were relatively stable alongside Yen throughout the session with the Nikkei 225 closing only 0.5% lower to 23234 points, still below the key 24000 point resistance level. The USDJPY pair has been trading tight throughout the day, overnight just below the 109 handle here and potentially setting up for a swing higher:
The ASX200 fell as expected – and the business news headline were equally as expected as over the top – with a 1.4% loss erasing the previous two week’s gains, finishing the day at 6994 points. The Australian dollar continues to defalte into modicum support levels at the mid 67’s vs USD and remains in a dominant downtrend going into the RBA meeting:
Both S&P and Eurostoxx futures are lifting slightly after their big gap down on the Monday open with the four hourly chart of the S&P500 showing a minor push back to the starting point nearer the 3260 level. This is quite oversold and will likely bounce on any good news, with the potential for a swing if price closes above the high moving average:
The economic calendar continues with US durable goods orders and consumer confidence numbers for January, but watch the Senate “trial” too, could be explosive!