See the latest Australian dollar analysis here:
Vaccine volatility continues to pullback extremely overbought markets across the region – save Japan – with the USD gaining strength against most of the majors going into tonight’s inflation report. Gold is still under enormous pressure here after its big retracement, up slightly after revisiting its extreme lows at the $1869USD per ounce level:
The Shanghai Composite is pulling back yet again, this time down 0.2% going into the close, currently at 3334 points while in Hong Kong the Hang Seng Index is off a similar amount, down 0.3% to be at 26156 points. Japanese stock markets continue to pick up speed though with the Nikkei 225 closing 0.5% higher to 25480 points while the stallout in the USDJPY pair has continued as it rollsover towards the 105 handle:
The ASX200 fell back just under 0.5% to close at 6418 points after being overbought for so long while the Australian dollar remains steadfast here just below the 73 handle as it consolidation phase post the vaccine news continues:
Eurostoxx and S&P futures are in a slight retracement mode with the four hourly chart of the S&P500 still stabilising here just above the October highs at the 3500 point level but short term momentum is waning, so watch for support to come under pressure:
The economic calendar includes 2 major inflation releases, first from Germany and then US, followed by even more ECB speeches again.