Asian stock markets are continuing their solid start to the trading week although Chinese stocks are pulling back in late trade. Tonight’s testimony by Fed Chair Powell is giving some risk markets pause with the USD a breather given there big surge late last week. The Australian dollar hit a new two month low after some dovish language change by the RBA at its meeting, despite yet another rate rise. Oil prices are holding on to their recent gains with Brent crude still above the $86USD per barrel while gold has stabilised from its surge last week, sitting just below the $1850USD per ounce level as it holds near its recent new monthly high:
Mainland Chinese share markets are dropping slightly going into the close after being up at the open with the Shanghai Composite down 0.4% to be just above the 3300 point barrier while the Hang Seng is still putting on runs, currently up 0.5% to 20713 points. Japanese stock markets are also on the go, extending last week’s surge with the Nikkei 225 up 0.3% to 28325 points while the USDJPY pair remains in a holding pattern above short term support, currently bang on the 136 handle:
Australian stocks are doing well despite another rate rise from the RBA, with the ASX200 closing 0.5% higher to push well above the 7300 point level at 7364 points. The Australian dollar however briefly made a two month low to cross below the 67 cent level following the release of the RBA statement with trader’s looking through the rate rise to yet more economic weakness ahead:
Eurostoxx and US futures are holding on to their respective gains from last night, with the S&P500 four hourly chart showing price action wanting to extend above the 4000 point level which was a key resistance area before the recent breakout. The possibility of a bottoming action has formed solid here after making a two week high:
The economic calendar is pretty light on tonight with all ears and eyes on Fed Chair Powell’s testimony to the US Congress.