See the latest Australian dollar analysis here:
A spike in new cases of coronavirus shook markets up a bit here in Asia today depsite the good run on Wall Street overnight. Gold and other safe havens have lifted, with Bitcoin accelerating after its recent breach above the $10K mark.
The Shanghai Composite is down the most, off by 0.6% after the long lunch break, still above the 2900 point barrier but only just at the 2910 point level. Meanwhile the Hang Seng Index has only tripped up a little, down 0.25% or so to 27752 points. Price had recently broken out above the high moving average on the daily chart but the 28000 point level is where firm resistance lies, as momentum is still not yet positive:
Japanese share markets had modest falls with the Nikkei 225 losing 0.3% to 23787 points, as safe haven buying in Yen hindered the recent uptrend. The USDJPY pair fell back below the 110 level after breaking through quietly overnight with the next level to watch at the 109.70 support area that has held all week:
The ASX200 was the odd one out, actually gaining a handful of points, up 0.2% to 7103, breaking the 7100 level for the first time. The Australian dollar moved much lower, unable to sustain itself above the 67.40 level against USD, now deflating into the 67 handle proper and fulfilling the downward trend channel:
Eurostoxx and S&P futures are down slightly but not enough to arrest the growing trend on Wall Street which continues to make record highs. The four hourly chart of the S&P500 shows price still bunching up at the 3370 point level, getting ready for another breakout but trailing support is relatively close:
The economic calendar includes the final German CPI print for January, then the actual US CPI print and initial jobless claims.
Note: apologies for the lack of a Macro Morning post, but I was cleaning up my office that got flooded from the torrential rain the Sunshine Coast experienced last night! Hopefully the rain stays away…