See the latest Australian dollar analysis here:
Another sea of red across Asian stock markets today as the crash continues, with local stocks leading the way despite a big cut to interest rates locally by the RBA and a near twenty year low for the Australian dollar. Japanese stocks are off as well despite the BOJ stepping in and buying up big, while Chinese shares have diverged fortunes a little, helped by a much more aggressive PBOC cut:
The Shanghai Composite was off by nearly 100 points before the lunch break but has recovered somewhat going into the close, currently down 0.4% at 2717 points. The Hang Seng Index is falling much sharper, down 2.7% to 21709 points with the daily chart showing no bottom in sight:
Japanese share markets continue to stumble with the Nikkei 225 losing 1% to 16552 points with the USDJPY pair lifting slightly after breaching last week’s peak above the 108 handle as the bearish double top pattern on the four hourly chart is wiped away as King Dollar returns to strength while shuffling off the normal risk correlation:
The ASX200 was thee worst performer, down 3.4% to close at 4782 points, now off by nearly 23% year on year. How’s your super travelling? The Aussie dollar is the star of the day howver – 55 cents now against USD and at parity with the Kiwi. Big signal there on global risk sentiment being in the toilet as it tracks commodities prices lower:
Eurostoxx and S&P futures are pulling back again, down 4% so far with the four hourly S&P futures chart again showing another breakdown is imminent, ready to break below the 2300 point level for yet another new low: it aint over!