See the latest Australian dollar analysis here:
A bit more calm has returned to Chinese equity markets although Japanese stocks are still having the wobbles following more COVID problems in Tokyo, but generally, Asian risk markets are having a good mid-week session that should translate to further gains tonight with Eurostoxx futures rising. Bitcoin is still deflating having pushed below its own ATR support line on the four hourly chart and almost back to the previous week starting point below the $38K level, but the HODLers should look at that bullish falling wedge pattern as a potential swing point, even though momentum is not yet signalling a reversal:
The Shanghai Composite is bouncing back sharply, up 0.8% to 3475 points while the Hang Seng Index is finally getting some momentum going, up 1% to 26471 points. Meanwhile Japanese stocks are pulling short with more COVID concerns, with the Nikkei 225 closing 0.2% lower at 27584 points. The USDJPY pair is possibly putting in a bottom here after making a new weekly low as it bounces off the 109 handle with some intrasession buying support evident on the recent four hourly candles:
Australian stocks were able to put in modest gains with the ASX200 taking back the previous losses to be up 0.4% to finally crack the 7500 point barrier. Meanwhile the Australian dollar has once again tried to break out above the 74 handle but still finding staunch resistance there just as it did late last week before the Friday smackdown:
Eurostoxx and S&P futures are pushing higher on the risk-on mood with the four hourly chart of the S&P500 showing price extending past the 4400 point level as it looks to get out of the continuation from last week’s sideways dance:
The economic calendar continues with the final services PMI prints for Germany/Europe and the US, plus Euro wide retail sales numbers for July and the EIA private oil data survey.