See the latest Australian dollar analysis here:
Almost a full sea of red across Asian share markets as the souring risk sentiment on Wall Street overnight spreads to most risk markets, although China is holding up well despite its latest PMI reading. The USD is continuing its surge in strength against most of the undollars, with the Australian dollar putting in some volatility on the latest jobs vacancy data, while oil prices are trying to stabilise with Brent crude barely holding to the $112USD per barrel level. Meanwhile gold is about to rollover below keep support levels as it struggles to keep the biggest bears away, depressed and ready to breakdown below the $1820USD per ounce level:
Mainland Chinese share markets are standing out by doing quite well as the Shanghai Composite is up more than 1.4% to 3403 points while the Hang Seng Index is putting in a scratch session, down just 0.3%, currently at 21935 points. Japanese stock markets however are feeling the heat, with the Nikkei 225 index closing 1.5% lower at 26393 points while the USDJPY pair has retraced slightly to be just above the 136 handle, still rejected last weeks high:
Australian stocks couldn’t escape the selling with the ASX200 finishing more than 1.9% lower, closing at exactly 6568 points. The Australian dollar got a bit volatile around today’s economic figures, but have returned to where they started this morning,heading towards the previous weekly low at the 68.80 level:
Eurostoxx and Wall Street futures are heading down sharply as we head into the European open, with the S&P500 four hourly futures chart showing price action now fully below the previous resistance level, with momentum clearly negative and ready to break lower:
The economic calendar includes two very important prints tonight, namely German unemployment and then US core PCE numbers.