See the latest Australian dollar analysis here:
Not a pretty sight across stock markets here in Asia in response to the tech wreck on Wall Street overnight, the exception being mainland Chinese bourses and relatively speaking, the local ASX200. The USD is also losing ground across the major currencies after last night’s reversal with gold still holding on well above the $1830USD per ounce level while the Australian dollar remains under pressure as commodity prices abate.
In crazy crypto land, Bitcoin has fallen back to the $55K level after briefly putting in a weekly low overnight alongside Dogecoin as the four hourly chart continues to form a bearish double top pattern:
The Shanghai Composite is putting on more gains, standing out from the rest of Asia, to close up 0.4% to 3441 points, while the Hang Seng Index is getting thumped, closing nearly 1.9% lower at 28073 points. Japanese stocks are taking the biggest hits however, with the Nikkei 225 closing 3% lower to 28608 points to 29518 points as the USDJPY is still trying to claw back some of the losses from the Friday night rout, heading back to just below the 109 handle:
The ASX200 was able to escape a wider carnage, losing only 1% to close at 7097 points while the Australian dollar is finding a modicum of support at just above the 78 handle after its big reversal overnight:
Eurostoxx and S&P futures are down between 1 and 1.2% with the four hourly chart of the S&P500 showing price on the ropes hear at the mid point of last week’s oscillation, with momentum not yet completely oversold but still looking cautious going into tonights session:
The economic calendar will focus mainly on the closely watched German ZEW survey and then a slew of Federal Reserve speeches that could be USD sensitive.