See the latest Australian dollar analysis here:
It’s risk on and damn the torpedoes with stock markets surging after the weekend gap, starting with a very positive mood here in Asia. The USD is finding a little bit of resistance following its very strong run last week although gold is really struggling to get off the floor, opening down slightly to the $1858USD per ounce level:
In mainland China, the Shanghai Composite is putting in a scratch session going into the close, currently at 3217 points while in Hong Kong the Hang Seng Index is surging after a poor finish last week, about to close nearly 1% higher at 23429 points. Japanese stock markets are also clawing back confidence, with the Nikkei 225 closing 1.3% higher at 23511 points despite a small drop in the USDJPY pair as it rolls over following an exhaustive swing rally last week:
The ASX200 was the odd one out, unable to gain any direction from the start to the close, finishing a handful of points or around 0.2% lower at 5952 points, while the Australian dollar remains subdued here just above the 70.50 level, with a minor bounce off a very oversold bottom:
Eurostoxx futures are extremely positive, up more than 1.5%, with S&P futures also in positive territory, up around 0.6% with the S&P500 four hourly chart looking in a much better positive here, reading to bounceback above the psychological 3300 point level:
The economic calendar is pretty clear tonight with only a couple ECB wonkish speeches to watch out for.