See the latest Australian dollar analysis here:
Outside of Japan, Asian stock markets have re-engaged to the upside despite the mixed lead from Wall Street overnight with local currencies still surging against a weak USD. Bitcoin has stalled in its epic journey, falling back but not below the $46K level following the Tesla bid as momentum reverts from its overbought status on the four hourly charts:
The Shanghai Composite is up nearly 1% going into the close, moving further above the 3600 point barrier while in Hong Kong the Hang Seng Index is up over 1.5% to 29988 points, almost cracking through the key 30000 point level. Japanese markets however remain in stall mode with the Nikkei 225 falling back slightly or 0.1% to 29464 points with the breakdown in the USDJPY pair holding at the mid 104 level without another session low but still looking very weak:
The ASX200 took back its previous loss to rebound 0.5% higher to close at 6858 points with the Australian dollar still not helping by staying above the 77 handle for nearly a two week high although it is now coming up against its weekly downtrend line:
Eurostoxx and S&P futures are lifting slightly going into the London session, with the four hourly chart of the S&P500 showing a small uptick even as momentum begins to taper as this reflation rally tries to get up to the 4000 level:
The economic calendar is inflation centric tonight with German and US inflation prints the key events to watch, with oil traders keeping an eye out for the EIA crude inventory report.