See the latest Australian dollar analysis here:
Following last night’s US inflation print, shockwaves continue to spread around currency and bond markets, with Asian stock markets caught up somewhat as the USD surges against undollar assets and local shares battered due to a higher than expected unemployment print. Gold remains strong as it consolidates at the $1850USD per ounce level while Bitcoin and other crypto tulips had a sudden inversion earlier in the day with a retracement back to the start of week position below the $65K level:
Chinese shares are surging, building on the previous sessions late bounceback with the Shanghai Composite up more than 1%, currently at 3532 points while the Hang Seng Index is taking a half step, up 0.5% as it climbs back above the 25000 point level, now at 25127 points. Japanese markets are also lifting higher, all due to a lower Yen, with the Nikkei 225 closing 0.5% higher at 29277 points as the USDJPY pair builds slightly on its big lift overnight, hovering just below the 114 level as it faces a very strong resistance level at 114.30 or so:
Australian stocks are the worst in the region, not helped by a diving AUD with the ASX200 closing more than 0.5% lower at 7423 points while the Australian dollar has caught up from other oversold undollar assets following the “surprise” US inflation print, now battling to hold abvoe the 73 handle here:
Eurostoxx and S&P futures continue to look weak as we head into the London session with the four hourly chart of the S&P500 showing price retracing below short term ATR support that had held throughout this buying frenzy, but note that long tail of buying support just above the 4600 point level that is likely to show the BTFD crowd where to step in:
The economic calendar includes the UK GDP and trade balance figures, then some major projections from the ECB with most US markets closed for Veteran’s Day.