A down session for Asian stock markets, considering most are closed for May Day or other holidays as risk sentiment is on tenterhooks at the next FOMC meeting gets away tonight. The regional bank contagion in the US is also playing on mood with USD pulling back slightly as Yen safe haven buying is dampened by a lack of domestic traders. The Australian dollar remains somewhat firm after the surprise rate rise by the RBA yesterday yet is still below the 67 cent level while oil prices are still depressed with Brent crude unable to get much above the $75USD per barrel level. Gold however is holding on to its overnight gains well above the $2000USD per ounce level:
Mainland Chinese share markets are still closed for May Day holidays while the Hang Seng has broken down on the poor overall risk sentiment, falling nearly 2% to close at 19582 points. Japanese stock markets are also closed for the rest of the week with thin trading in the USDJPY pair still retracing to almost break below the 136 level after only recently making a new monthly high:
Australian stocks remain under a lot of pressure as the RBA wants to engineer a recession with the ASX200 again closing more than 1% lower to 7185 points. The Australian dollar surge following the meeting was retraced somewhat overnight below the 67 handle, but has not yet made any further lows in today’s session as traders await tonight’s Fed decision:
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