See the latest Australian dollar analysis here:
The end of the trading week is here, with mainland Chinese stocks returning to the fray as traders await the all important Friday night US unemployment print, with Treasury yields broadcasting new four month highs. Most stock markets across Asia are putting in very solid returns in response to the breakout in both European shares and Wall Street overnight. The USD is strengthening against most of the risk currencies, while gold fails to get going once more but is still supported above the $1750USD per ounce level. Meanwhile Bitcoin has consolidated on its surge towards the $55K level, pausing here as it barrels in on its previous record high, having gained more than 20% in the last week:
Mainland Chinese markets return from a near week long holiday with the Shanghai Composite gapping 0.8% higher but fading now going into the close, up only 0.3% to 3579 points. Meanwhile the Hang Seng Index is the odd one out, unable to follow through on its previous major surge, treading water at the 24636 point level while Japanese markets doubled down on their breakout with a near 1.8% gain by the Nikkei 225 to close at 28171 points. The USDJPY pair has helped with a new lift higher that has almost matched the previous weekly high and the 112 handle after tracking sideways at the 111.50 level:
Australian stocks are putting in a very solid end to the trading week with the ASX200 closing more than 0.7% higher again, this time at 7316 points while the Australian dollar is pulling back towards the 73 handle and below the previous weekly high in response to the reopening on Chinese iron ore markets:
Eurostoxx and S&P futures are up slightly going into the London open holding on to their overnight gains, with the four hourly chart of the S&P500 showing the breakout above ATR resistance at the 4360 point level taking a slight pause here at the 4400 point level and not yet making a new weekly high but still staving off a wider correction:
The economic calendar will focus squarely on the NFP/unemployment print in the US which will set the course for the remainder of the trading month.