See the latest Australian dollar analysis here:
Asian share markets are seeing quite a bit of selling going into the closing sessions as risk taking reverses course yet again, this time on increased concern that both the Fed and ECB are going to hold the line on interest rate rises with Lagarde commenting as such this afternoon. Currency markets are seeing a big surge in Euro in response, while other undollars are pulling back against USD, particularly the Australian dollar which can’t seem to climb above the 71 cent level. Oil prices are stabilising with Brent crude now hovering just above the $112USD per barrel level while gold is trying to build on its recent gains, currently lifting at the $1856USD per ounce level:
Mainland Chinese share markets started poorly and accelerated the selloff into the close with the Shanghai Composite losing more than 2.3% to finish at 3070 points while the Hang Seng Index has similiarly inverted, down 2% at 20063 points. Japanese stock markets caught up with the selling as the Nikkei 225 index lost nearly 1% to close at 26748 points while the USDJPY pair has rolled over again, almost matching its previous weekly low, currently at the mid 127 level as Yen defensive buying has not yet abated:
Australian stocks were the best in the region, relatively speaking, with the ASX200 finishing only 0.3% lower at 7128 points, keeping the key 7100 point support level intact for now. Meanwhile the Australian dollar has consolidated below the 71 handle after finding significant resistance at that level overnight, but four hourly momentum remains positive for now:
Eurostoxx and Wall Street futures are down more than 0.5% as we head into the European open with the S&P500 four hourly chart showing price unable to breach the key 4000 point level as this swing trade loses steam and possibly inverts:
The economic calendar includes a slew of flash manufacturing PMI surveys for Europe and the US to closely watch.