See the latest Australian dollar analysis here:
Not a very positive end to the trading week here in Asia as the bath of blood in Chinese returned today after a very short reprieve, spilling over into other bourses as a result. Last night’s US GDP print and initial jobless claims sent USD lower but this is being clawed back on defensive buying. Gold is just holding on below the $1830USD per ounce level while Bitcoin has fallen asleep, floating along here just below the $40K level:
The Shanghai Composite is down 0.4% to just under 3400 points while the Hang Seng Index is off by nearly 2% after recently stabilising a little bit, down over 900 points while Japanese stocks are getting caught up in the risk off mood, with the Nikkei 225 closing nearly 1.8% lower at 27283 points. The USDJPY pair has stabilised only a little in today’s trade after the selloff overnight, remaining well below the 110 handle as momentum on the four hourly chart remains well into the negative zone:
Australian stocks got the jitters again with the ASX200 pulling back 0.3% to finish the week at just below the 7400 points level. Meanwhile the Australian dollar is slowly deflating, currently below the 74 handle and heading back to its pre-breakout level just below previous overhead ATR resistance on the four hourly chart:
Eurostoxx futures are down 0.8% while S&P futures are also pulling back slightly with the four hourly chart of the S&P500 showing price almost ready to breakdown below the recent lows at the 4370 point level:
The economic calendar finishes the week with the German 2Q GDP print, then US PCE for June and the closely watched Michigan consumer sentiment print.
Have a nice weekend and just remember if you’re lockdown, chin up, its not the Blitz….