Chinese stocks to the moon as Australian dollar lifts

See the latest Australian dollar analysis here:

Macro Afternoon

by Chris Becker

The start of the trading week has seen mainland Chinese stocks soar, with the Shanghai Composite up nearly 3% in midday trade, now putting on nearly 20% from its lows and building above the 3000 point barrier:

Meanwhile, other Asian bourses are up solidly, except the ASX200 which is treading water after the announcement of the Victorian border shutdown and spike in COVID-19 cases, although it is starting to show some signs of life post the ANZ job ads print.

The Australian dollar is getting into the risk-on mood as well, lifting past the mid 69 handle after gapping down on the weekend open, but still on trend and about to match its previous weekly highs:

The PBOC set the Yuan reference rate a little lower from its Friday fix, with offshore Yuan now trading below the 7.06 level, almost down to a monthly low with the daily chart looking to break support very soon:

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