See the latest Australian dollar analysis here:
Asian stock markets are quite mixed as we head towards the end of the trading week due to the very mixed results on Wall Street and European shares overnight. The USD is continuing its retreat against risk currencies although Euro is pulling back slightly coming into the London session, while the Australian dollar remains well above the 71 cent level. Meanwhile gold is unchanged, still flat for the week as it unable to pushing through the $1790USD per ounce level as Bitcoin continues to deflate, now retracing below the $50K level as short term momentum reverts back to the medium term downtrend:
Mainland Chinese shares liked the inflation print with the Shanghai Composite closing more than 1% higher at 3678 points while the Hang Seng Index has put in a similar session to get back on track, up 1% at 24232 points. Japanese markets are pulling back slightly with the Nikkei 225 closing 0.3% lower at 28781 points with the USDJPY pair remaining relatively firm here at just above the mid 113 level with no new session lows, but still just below trailing short term resistance:
Australian stocks followed the Japanese lead, with the ASX200 retracing just under 0.3% to be back below the 7400 point level as the Australian dollar continues to extend its strong move above the 71 handle after clearing last week’s intrasession high overnight:
Eurostoxx futures and S&P futures are stalled here going into the London open, with the S&P500 four hourly chart showing price coming up against key 4700 point resistance level that needs to be cleared to call this Omicron led dip over:
The economic calendar tonight includes German trade balance and US initial weekly jobless claims.