See the latest Australian dollar analysis here:
Markets are sliding into risk off mode today in Asia following the sour mood on Wall Street overnight with a sea of red on all bourses. Last night’s Federal Reserve meeting is still seeing USD firm against all the majors except risk proxy Yen which is surging post the BOJ meeting. Gold looks set to breakdown as it rejects very form resistance overhead at the $1970 level, falling back to trailing support on the four hourly chart, currently just below the $1950USD per ounce level:
In mainland China, the Shanghai Composite is the best in the region, but still down 0.4% to 3270 points while in Hong Kong the Hang Seng Index is sharply off, down over 1.7% to 24288 points. Japanese stock markets are no longer holding as the stronger Yen bites with the Nikkei 225 closing 0.7% lower at 23319 points as the USDJPY pair breaksdown to another new weekly low (solid black horizontal line) well below the 105 handle:
The ASX200 was nearly the worst, eventually closing 1.2% lower at 5883 points while the Australian dollar fell back to four hourly support at just above the mid 72 level, making a new intraweek low:
Eurostoxx and S&P futures are down 1% and falling fast with the S&P500 four hourly chart showing a key rejection of resistance at the 3420 point area, matching last week’s lows:
The economic calendar includes EU core inflation and US initial jobless claims.
PS: 47 days til the US Presidential election.