See the latest Australian dollar analysis here:
A much better start to the trading week here in Asia following the Friday night flipflop on risk taking on Wall Street, with all major stock markets gaining. The USD is pulling back some of its Friday night losses, which is helping domestic currencies at least as Yen safe haven buying continues to taper. In Bitcoin world, the crypto currency has gapped above the $34K level but has stalled this afternoon while gold is actually dipping below the $1800USD per ounce as the $1810 rounding top pattern on the four hourly chart seems to suggest a push to the $1795 support and then trailing ATR level at $1785 later tonight:
The Shanghai Composite is up 0.7% going into the close to 3547 points while the Hang Seng Index is putting on similar gains, up 0.6% to 27510 points. Japanese stocks however are surging the strongest with the Nikkei 225 closing over 2% higher to 28569 points as the USDJPY pair maintains its Friday night high above the 110 handle but without any further advance so far:
Australian stocks are also putting on runs but at the same pace as Chinese bourses with the ASX200 closing 0.8% higher as it advances back above the 7300 point level to 7333 points. Meanwhile the Australian dollar is rolling over slowly here after its Friday night surge, retracing back below the 75.70 level as four hourly momentum remains in the negative zone and points to a return to last week’s low at the 74 handle:
Eurostoxx and S&P futures are putting on barely any gains so it seems the surge here in Asia may not translate to anything meaningful later tonight with the four hourly chart of the S&P500 pointing to a small retracement back to last week’s mid session high at the 4350 point level:
The economic calendar starts the week very quietly without much on the agenda this evening.