See the latest Australian dollar analysis here:
Risk sentiment has soured a little here in Asia following the reaction to the latest “transitory” US inflation print overnight that sent Wall Street back a few pegs, with Asian stocks retreating from their once firm better start to the trading week. Bitcoin has cracked below the $32K level after stalling previously, making a new three week low. Gold is holding on above the $1800USD per ounce but is still hitting overhead resistance at the $1810 former rounding top pattern apex on the four hourly chart:
The Shanghai Composite is down over 1% to close at 3529 points while the Hang Seng Index has also pulled back smartly, down 0.6% to 27784 points. Japanese stocks are also looking wobbly with the Nikkei 225 closing 0.3% lower at 28608 points as the USDJPY pair pulls back ever so slightly from its rebound trend, remaining just below ATR trailing resistance at the 110.50 level:
Australian stocks are the only ones to put on any runs as the Westpac consumer sentiment survey was very solid indeed, the ASX200 closing 0.3% higher at 7354 points. Meanwhile the Australian dollar is trying to bounce back from its US inflation induced falls overnight but is looking shakey here going into the London open at just over the mid 74 level:
Eurostoxx and S&P futures are pulling back here with the four hourly chart of the S&P500 retracing back to last week’s mid session high at the 4350 point level, which has so far proved solid short term support:
The economic calendar now adds the UK inflation print to the mix then the continuation of the new US earnings season.