See the latest Australian dollar analysis here:
Asian stocks markets are having another mixed session as we head into the end of the trading week, not helped by Chinese stocks resuming their tech selloff, local shares recoiling from yet another lockdown while Wall Street wobbles on another Fed hawks comments. The volatility in currency markets is subsiding a little from last nights economic prints and could spark up again tonight with the BOE meeting, meanwhile Bitcoin is rolling over after breakingout last night following a nascent bullish falling wedge pattern but momentum is already waning as it resists the $40K level:
The Shanghai Composite is fading going into the close, down 0.4% to 3465 points while the Hang Seng Index is returning to the sell-phase, down 0.7% to 26240 points. Meanwhile Japanese stocks are rebounding on the weaker Yen, with the Nikkei 225 closing 0.5% higher at 27728 points. The USDJPY pair has continued to lift higher after last night’s volatility with a push up towards the 109.70 level, getting back to the start of week position:
Australian stocks are putting in a scratch session absorbing the latest trade balance and possible new Victorian lockdown news with the ASX200 lifting only 0.1% to close at 7511 points. Meanwhile the Australian dollar is trying to dust itself off after getting smacked down below the 74 handle, lifting back there but not quite going into the London open although momentum remains nicely elevated:
Eurostoxx and S&P futures however are quite flat going into tonight’s session with the four hourly chart of the S&P500 showing price again unable to push substantially through the 4400 point level as it still fails to get out of the continuation from last week’s sideways dance:
The economic calendar continues with a big one to watch out for tonight – the BOE latest interest rate meeting, followed up by the US trade balance and weekly initial jobless numbers.