See the latest Australian dollar analysis here:
Asian stock markets are retracing across the region in response to the sharp falls on tech stocks overnight on Wall Street but it appears to be mean reversion more than an outright selloff at this stage. The Australian dollar remains under pressure alongside other risk currencies however, with Bitcoin still struggling at the $46K level as gold clawsback its post NY/XMas volatility to buid above the $1800USD per ounce level:
Mainland Chinese shares are down significantly with the Shanghai Composite off by more than 1%, currently at 3590 points while the Hang Seng Index is off the same, hovering at the 23000 point level. Japanese markets are putting in scratch sessions with the Nikkei 225 closing a few points higher at the 29308 point level while the USDJPY pair retraces back to the 116 handle after a big surge overnight, putting in a five year high in the process:
Australian stocks had a minor pullback after a big start to the trading week previously, with the ASX200 closing 0.35% lower at 7565 points while the Australian dollar also fell back after its false breakout overnight, now back to the low 72 level as momentum reverts:
Eurostoxx and Wall Street futures are fading fast going into the London open, with the S&P500 four hourly chart showing price stuck in a tight rectangle pattern after failing to breakout above the 4800 point level overnight as momentum wanes:
The economic calendar includes private ADP employment data in the US plus some EIA oil data.