See the latest Australian dollar analysis here:
Another very mixed day across stock markets in Asia to finish the trading week (and month) with the bounces overnight on Wall Street not translating into anything meaningful. There’s been a co-ordinated bounce against USD, with gold managing a small boost to $1875USD per ounce, but still well below its previously well supported $1900 level:
The Shanghai Composite is stuck with a scratch session so far, down only 0.1% to 3269 points while in Hong Kong the Hang Seng Index is pausing in its retracement, off a handful of points to 24580. Japanese stock markets are losing ground fast, with the Nikkei 225 off by more than 0.5% to 23190 points as the USDJPY pair reverses all of its overnight gains to be back below the mid 104 level:
The ASX200 is also stuck with a scratch, down 0.1% to 5956 points as the Australian dollar bounces back to the mid 70.50 level but still below its pre-breakdown point, in line with other undollar risk assets:
Eurostoxx and S&P futures are lagging however with the four hourly chart of the S&P showing an inability to get back above the 3300 point “bottom” as volatility gains momentum:
The economic calendar finishes the week – and month – with a couple of whoppers, namely EZ-wide flash GDP prints for the 3Q, and then US personal consumption expenditure (PCE) and the Michigan consumer sentiment survey. Not many trading days left until the US “election” so watch that volatility start to ratchet up….
Have a good weekend and stay safe….