See the latest Australian dollar analysis here:
by Chris Becker
Stocks are jumping out of the gate to start the trading week in a positive mood, following the surge on Wall Street on Friday night which gave a united signal to the risk complex to buy up (almost) everything. Gold is back above the $1800USD per ounce level as other undollars rebound on the back of a weaker USD and news of a possible vaccine for the coronavirus.
In mainland China, the Shanghai Composite is up nearly 2% to 3448 points while in occupied Hong Kong the Hang Seng Index is up nearly 1% to 25943 points. The daily chart shows price stabilizing here after almost retracing all of last week’s breakout with momentum readings remaining positive:
Japanese stocks are the best in the region, with the Nikkei 225 up over 2% to close at 22784 points. The USDJPY pair however is not showing any signs of moving, still stuck below former trailing ATR support and the 107 handle at its recent weekly lows going into the City open:
The ASX200 was up over 1% at one stage, retracing in the middle of the session before a surge at the close sees it up 0.9% to 5977 points. A similar pattern in the Australian dollar which rallied back towards its previous highs near the 70 handle but has come back a little in afternoon trade:
Eurostoxx and S&P futures are up over 1.5% with the four hourly chart of the S&P500 looking well bid and ready to breakouut above previous week’s session highs at the 3175 point level – can’t hold this market back!