See the latest Australian dollar analysis here:
It’s all engines ahead for risk as Chinese shares breakout, pushed along by a higher Aussie dollar and lower Yen as risk appetite comes back again here in Asia. Other safe havens like gold and Bitcoin are slipping while Japanese markets are closed for yet another holiday.
The Shanghai Composite is up 0.5% after the long lunch break with the PBOC Yuan fix not upsetting much, currently at 2905 points while the Hang Seng Index is the biggest mover, up 1.3% to 27591 points. Price held above the low moving average level at 27000 points and is now above the high moving average, pointing to a nice swing trade that will find resistance at 28000 points proper:
Another holiday in Japan means no move in Japanese shares but light trading in Yen is seeing itself against both USD and AUD, with the former pair breaking out slightly on the four hourly chart, almost hitting the 110 handle:
The ASX200 had a solid session as expected, lifting some 0.6% to 7055 points, despite a higher Australian dollar that continues to bounce off oversold levels and again breaches the 67 handle – but for how long:
Eurostoxx and S&P futures are up at least 0.5% with the four hourly chart of the S&P500 showing a new record high is likely on the cards again tonight as all the other risk assets align to push it to the moon! Price has cleared above resistance and last week’s high at the 3340 point level, so here we go again:
The economic calendar is Euro focused, no wait – British focused and then continental Europe focused tonight – with a slew of British releases including 4Q GDP and industrial production, then two speeches from ECB President Lagarde and BOE Governor Mark Carney.