See the latest Australian dollar analysis here:
The mixed start to the trading week for Asian stock markets continued with a lack of direction quite evident as Chinese bourses continued to diverge, Japanese markets were closed while local shares bounced back sharply. The USD remains very strong against the major currency pairs with Euro looking dire indeed while gold is frantically trying to hold on to support after getting shot in the knees overnight, pushed all the way down to the $1800USD per ounce level. The four hourly chart does exhibit a classic bullish falling wedge pattern, although its quite steep:
Chinese shares are diverging again with the Shanghai Composite closing 0.3% higher at 3589 points while the Hang Seng Index is still going the other way, falling over 1% to close at 24681 points. Japanese markets were closed while the light volume has seen the USDJPY pair pushed back above the 115 handle for the first time since 2016!
Australian stocks snapped back after a very poor start to the trading week with the ASX200 0.8% to close back above the 7400 point level at 7410 points as the Australian dollar is still going nowhere but down, sitting right on the 72 level after previously making a new weekly and monthly low:
Eurostoxx and S&P futures are falling sharply going into the London open with momentum inverting almost completely after the Powell nomination volatility pushed it over last night, with the S&P500 four hourly chart showing price almost back at the previous weekly low:
The economic calendar ramps up with a slew of flash manufacturing/services PMIs across Europe and US tonight.