See the latest Australian dollar analysis here:
Asian stocks are having a relatively good response to the overnight higher risk sentiment following the latest Fed rate hike and subsequent slowdown signals, yet Chinese shares remain the laggard in the region. Stronger moves against USD are still holding on with the Australian dollar just above the 70 level while oil prices are slowly pushing higher with Brent crude now back at the $103USD per barrel level, while gold has inched slightly higher to build on its overnight gains, currently at the $1740USD per ounce level, almost making a two week high:
Mainland Chinese share markets were up at the halfway point but are slowing down at the close with the Shanghai Composite up just 0.2% at 3283 points while the Hang Seng Index is still in retracement mode, down 0.2% at 20623 points. Japanese stock markets are doing a little bit better, with the Nikkei 225 up 0.3% to 27815 points as the USDJPY pair drops sharply down to the mid 135 level as Yen buyers step in amid the renewed USD weakness for a new weekly low:
Australian stocks had a very solid lift from the Fed rate hike fallout with the ASX200 closing nearly 1% higher to almost get to the 6900 point level, finishing at 6889 points. The Australian dollar has again tried to punch through the 70 handle but hasn’t advanced on last night’s post Fed move as momentum remains nicely overbought:
Eurostoxx and US futures are not moving but still holding on to their overnight gains with the S&P500 four hourly futures chart showing price action wanting to continue its breakthrough above the 4000 point level to start a new relief rally:
The economic calendar doesn’t cool off tonight following the Fed, with German inflation and US Q2 GDP results dominating.