See the latest Australian dollar analysis here:
The bounce is in and risk taking is going great on Asian stock markets after a very mixed start to the trading week with all bourses reporting in the green with solid sessions. The USD continues to be under pressure following the Fed Chair’s testimony overnight but this could come under jeopardy if tonight’s core inflation print comes in higher than expected. Bitcoin is stalled at just over the $42K level but gold has held on to its breakout above the $1800USD per ounce level, remaining just shy of the previous weekly highs:
Mainland Chinese shares are lifting nicely with the Shanghai Composite up 0.6% to 3589 points while the Hang Seng Index is more than just bouncing back, its surging – now up over 2% to cross the 24000 point level, currently at 24307 points. Japanese markets however are also surging after worrying signs of Yen appreciation with the Nikkei 225 closing 1.8% higher at 28742 points while the USDJPY pair is flattening out here again after failing to make its bounce stick overnight, currently hovering at the 115.30 level:
Australian stocks were the relative poor performers with the ASX200 eventually closing 0.6% higher to the 7438 point level while the Australian dollar is holding on above the 72 handle after finally finding some direction this week but it has overhead resistance coming up to overcome going into the US inflation print:
Eurostoxx and Wall Street futures are pushing higher going into the London open, with the S&P500 four hourly chart showing price wanting to breach the previous weekly intrasession highs at the 4700 point level:
The economic calendar will focus squarely on the latest US core inflation print tonight followed by the latest EIA oil data.