See the latest Australian dollar analysis here:
Its risk on across Asia as stock markets gather pace with big moves higher across the board, as undollar assets and safe havens are sold off. The bounce in oil prices is seeing commodity currencies like the Aussie dollar lift slightly, while gold is just holding to daily support as all risk goes into stocks as Wall Street looks to return to its pre-virus highs.
The Shanghai Composite has been bid all throughout the session to finish nearly 1.8% higher, closing at 2866 points while the Hang Seng Index had its best day, up 2.6% to 27477 points, fulfilling the previous bounces and almost getting back to its last support level:
Japanese share markets are catching up strongly as well with the Nikkei 225 closing 2.4% higher at 23873 points in a big surge that almost takes it back to its previous highs. The elevated USDJPY pair remains inflated and pushing higher, almost breaking through the 110 handle here in a very extended position that is supporting Asian risk assets as Yen sells off sharply:
The ASX200 was the laggard, but its not a bad result – 1% higher to 7049 points and confidently breaking through the 7000 points barrier finally. This is despite a slightly higher Australian dollar that is slowly melting higher following its post RBA bounce, now above previous trailing ATR resistance at the mid 67 level:
Eurostoxx and S&P futures are up over 0.6% and look set to return Wall Street to their previous highs with the four hourly chart of the S&P500 indicating a breakout above resistance at the 3340 point level after nominally breaking last week’s intrasession high:
The economic calendar includes another speech from ECB President Lagarde this time in Brussels, plus the latest initial jobless claims from the US.