See the latest Australian dollar analysis here:
Still not a pretty sight across risk markets here in Asia with Taiwanese stocks in near freefall, while other risk assets remain concerned about inflation fears across the US and Europe, with both German and US inflation monthly prints coming in tonight. In crypto land, Bitcoin has bounced back from a short term blip down to the $55K level, now pushing above $57K with the medium term outlook looking a little better as the bearish double top pattern on the four hourly chart morphs into something less dire:
The Shanghai Composite is again the standout, closing nearly 0.6% higher to 3463 points, while the Hang Seng Index is also bouncing back, up nearly 0.4% at 28114 points. Japanese stocks are still taking the biggest hits however, with the Nikkei 225 closing 1.4% lower to 28147 points as the USDJPY is hovering below the 109 handle and unable to claw back above previous support, not resistance at the 108.80 level:
The ASX200 continued its own mild selloff, only losing 0.7% this time to still finish above 7000 points, or 7044 but the Australian dollar has clearly broken down here on the four hourly chart, breaking below the recent session lows and the 78 handle proper with the potential to break key weekly support next:
Eurostoxx and S&P futures are struggling to find traction here amid the selloff in Asian shares with the four hourly chart of the S&P500 showing price still on the ropes near the previous weekly low at key support at the 4100 point level:
The economic calendar includes German inflation and the US core inflation numbers tonight, both will be very closely watched!