See the latest Australian dollar analysis here:
Asian share markets have moderated their recent gains with gold and Bitcoin the only undollar assets to advance. Moody’s and Fitch spoiled the party with a negative reaction to the Aussie economy, particularly the banks on the coronavirus impact as Chinese authorities try to damp down the growing outrage surrounding the government’s response to the outbreak.
The Shanghai Composite is pulling back going into the weekend break, currently down 0.6% to 2849 points while the Hang Seng Index is also giving back some of its recent gains, down 0.7% to 27279 points, steadying here without a new session high that could still turn into a dead cat bounce:
Japanese share markets are having a small selloff as well with the Nikkei 225 currently down 0.4% to 23816 points as Yen selling moderated. The elevated USDJPY pair remains poised just below the 110 handle here in a very extended position that will support Asian risk assets until it doesn’t – watch the 109.75 level as the point of control:
The ASX200 is off half a percent, down to 7012 points and is likely to finish the week above the 7000 points barrier despite the Moody’s warning. This is despite a much lower Australian dollar that has now almost retraced all of its post RBA bounce, now at the 67.20 level and could possibly return to the start of week lows:
Eurostoxx and S&P futures are pulling back from their recent highs with the four hourly chart of the S&P500 indicating that the breakout above resistance at the 3340 point level may taper going into tonights NFP print, so watch the low moving average for any signs of downside volatility:
The economic calendar finishes the week with the key non-farm payroll January print in the US tonight. Have a good weekend and stay safe!