Asian stock markets are pushing higher alongside their North Atlantic brethren with Japanese shares leading the charge despite a strong Yen. Today’s speech by RBA Governor Lowe didn’t upset the Aussie dollar, even though he was more dovish than a dove dipped in white paint at a dove convention, with other risk currencies still continuing the mild reversal seen from last week. Gold however has fallen back below the $1800USD per ounce level after failing to follow through with its breakout at the start of the week:
Mainland and offshore Chinese shares remained closed for Chinese New Year and won’t be back until next week, with Japanese stocks markets seeing more upside gain as Yen appreciation slowed down overnight. The Nikkei 225 closed 1.7% higher at 27557 points in a stonking session with the USDJPY pair trying to not crack below key support at the 114.50 level, putting in a very minor rally this afternoon but it needs to get back above the 115 handle – the previous weekly high – fast:
Australian stocks continued to build post the RBA meeting and also the Governor’s she’ll be right attitude to inflation with the ASX200 putting on more than 1% to close at 7087 points. Meanwhile the Australian dollar put on the brakes slightly, finding some very short term resistance at the 71.50 level, still shy of last week’s intrasession high:
Eurostoxx and Wall Street futures are again inching higher going into the London open, with the S&P500 four hourly chart showing price building above previous overhead resistance at the 4430 area and ready to get back to the pre-breakdown levels, but watch for any earnings catalysts to upset this ride:
The economic calendar continues with a flash inflation report for the Eurozone while in the US its the latest EIA oil stock and ADP private employment prints.