See the latest Australian dollar analysis here:
While Wall Street made a new record high on Friday night that embiggened Asian stocks today, Chinese stock markets are selling off on their own as US-listed issues bear the brunt of Beijing’s self-induced tech breakdown. Commodities and currencies are more stable although Bitcoin gapped sharply this morning, lifting more than 12% to almost break through the $40K level although it has pulled back slightly to just over the $38K level after yet more Dogecoin/Musk shenanigans:
The Shanghai Composite is still selling off quickly, down 2.6% to 3456 points so far while the Hang Seng Index is off by nearly 1000 points, down 3.3% to 26415 points. Japanese stocks are doing much better after a very long break, with the Nikkei 225 up by nearly 1% to 27805 points. The USDJPY pair has pulled back from its Friday night highs but is remaining just above the 110 handle here, although momentum on the four hourly reading has also moved away from its overbought levels:
Australian stocks are again basically unchanged – probably scratching their heads after the rat-licking going on in Sydney over the weekend – with the ASX200 pipping just over 7400 points. Meanwhile the Australian dollar continues to deflect overhead ATR resistance on the four hourly chart as it deflates down to the mid 73 level going into the London open:
Eurostoxx and S&P futures are pulling back slightly going into the European open with the four hourly chart of the S&P500 showing price possibly wanting to revisit the former highs at the 4380 level as momentum reverts from its nicely overbought phase. Continued upside depends on more outperforming on corporate earnings this week:
The economic calendar starts the week with the latest German IFO business survey followed by a slew of Treasury auctions and US new home sales data.