See the latest Australian dollar analysis here:
Asian share markets remain unsettled after Friday’s fizzer on Wall Street, as the upcoming Biden presidential inaguration later this week is possibly hindering risk taking. Gold and silver had wide trading ranges to start the week while Bitcoin has been falling sharply later this afternoon after it failed to breach the $40,000 level late last week and setup an imminent return to the previous bear market (aka two weeks ago) lows around the $33000 level:
The Shanghai Composite is starting the week in rebound, up 0.8% to 3595 points while in Hong Kong the Hang Seng Index is having a similar start, currently up 0.9% to 28829 points. Japanese markets are in retreat mode though, extending their Friday losses with the Nikkei 225 closing 0.9% lower to 28261 points as the USDJPY pair is still unable to get back above the 104 level with the four hourly chart setting up for a retracement below the 103.50 level after this stall phase:
The ASX200 is also in sell mode, closing some 0.7% lower to 6663 points, flopping back below the 6700 point level despite a fall in the Australian dollar which has pulled back to the previous weekly low and now solidly below the 77 handle, having lost a full cent since Friday night:
Eurostoxx and S&P futures are tentative at best this afternoon as risk markets continue to send mixed signals. The four hourly chart of the S&P500 shows price well below the previous weekly support level but only just above the trendline from the post-election low – can it hold here through to Friday?
The economic calendar is very quiet tonight given the US long weekend with not much on the agenda.