See the latest Australian dollar analysis here:
Asian stocks have slipped in the first session of the trading week due to the very disappointing global PMI prints from Friday night that saw Wall Street lose over 1%. Local stocks have weathered the poor start a bit better with the Australian dollar managing to almost hold on to its recent weekly high. Oil prices are falling again with Brent crude sliding further lower to the $96USD per barrel level, while gold hasn’t moved after its big short covering rally from Friday night, hovering here at the $1724USD per ounce level:
Mainland Chinese share markets are sliding into the close with the Shanghai Composite down 0.4% to 3256 points while the Hang Seng Index is the worst in the region, down another full 1% to 20394 points. Japanese stock markets have finally reverted after a week long surge, with the Nikkei 225 down 0.8% to 27700 points as the collapse in the USDJPY pair from Friday night creates a Yen headwind:
Australian stocks had a scratch session with the ASX200 closing a handful of points lower, still unable to cross back above the 6800 point level, finishing at 6789 points. The Australian dollar gapped lower in the morning before recovering to be just above the 69 handle after rejecting the 70 level on Friday night after putting in a new weekly high:
Eurostoxx and US futures are steady as we head into the European open, with the S&P500 four hourly futures chart showing price action unable to breakthrough the 4000 point level as this nascent rally rolls over but at least stays above the previous weeks’ high:
The economic calendar starts the trading week with the latest German IFO business survey.