Another green day on Asian stock markets as the Reddit fizzle continues, with sentiment firming and volatility waning, at least in equities. The RBA’s hold and subsequent extension of QE has pushed the Australian dollar slightly lower as the USD remains firm against most of the major currencies. Bitcoin is hovering at the $34K level while silver is exhibiting a very short term bullish pattern here on the hourly chart, a falling wedge that maybe presaging another breakout:
The Shanghai Composite is up 0.6% going into the close, at just over the 3500 point level at 3530, while in Hong Kong the Hang Seng Index is again moving higher, this time up 1.5% to close at 29336 points. Japanese markets are still rebounding with the Nikkei 225 finishing more than 1% higher at 28362 points with the USDJPY pair pulling back initially before finding stubborn resistance at the 105 handle:
The ASX200 also had another solid session, moving exactly 99 points or 1.5% higher to 6762 points helped by the expansion of RBA stimulus with the Australian dollar heading back towards the 76 handle with expectations of lower levels as London markets open:
Eurostoxx and S&P futures are continuing their rebound with the four hourly chart of the S&P500 wanting to get back to last week’s prebreakdown low around the 3800 point level:
The economic calendar includes the flash 4Q GDP print for the EU, plus a few Fed speeches to keep an eye on.