See the latest Australian dollar analysis here:
Asian stocks are relatively mixed still with Chinese shares playing catchup as traders react to more Evergrande speculation while the ASX200 lost a lot of ground on more COVID concerns. The USD remains relatively firm against most of the risk currencies although the Australian dollar is coming back slightly, while gold remains under pressure as it slips back below the $1750USD per ounce level. The four hourly chart looks ominous here with short term momentum rolling over:
The Shanghai Composite is up nearly 0.7% going into the close, currently at 3607 points with the Hang Seng Index surging even faster, up 1.6% to 24617 points. Meanwhile Japanese markets are still pulling back despite a softer Yen, with the Nikkei 225 closing 0.2% lower at 30183 points as the rising USDJPY pair gets through the 111 handle with no signs of stopping:
Australian stocks are pulling back sharply, with the ASX200 falling 1.5% to 7275 points, not helped by a rising Australian dollar which just breached the 73 handle as it matches last week’s false breakout high:
Eurostoxx and S&P futures are barely up going into the London open, with European stocks likely to only lift 0.2% or so, while the four hourly chart of the S&P500 shows price hovering well below the previous weekly resistance high at the 4470 point level:
The economic calendar includes the latest German consumer confidence print, US house prices and then the US consumer confidence print for September.