A cracking CPI print has sent the Australian dollar soaring against USD while Asian equity markets have lifted strongly across the region. With the shortened trading week due to US Thanksgiving other risk markets are effectively in a holding pattern although oil prices continue to drip lower. Currency land continues to digest the growing possibility of a cut by the Fed in its upcoming December meeting but the standout was the Pacific Peso as it broke back above the 65 cent level against USD then the Kiwi which elevatored up on the latest RBNZ meeting where further rate cuts look like being ruled out.
Oil markets are slowly pulling back again with Brent crude drifting towards the $61USD per barrel level while gold is doing well to extend its recent gains as it heads above the $4150USD per ounce level:
Mainland Chinese share markets are steady in afternoon trade with the Shanghai Composite drifting slightly lower to 3867 points while the Hang Seng Index is up around 0.3% to 25957 points. Japanese stock markets are pushing much higher however with the Nikkei 225 up nearly 2% to 49532 points with the USDPY pair strengthening due to concerns the BOJ is ready to raise rates but still hovering at the low 156 level:
Australian stocks are putting in a solid session with the ASX200 up 0.8% to 8606 points while the Australian dollar has lifted back above the 65 cent level against USD as it looks like the RBA has lost the inflation game:
S&P and Eurostoxx futures are eking out small lifts after last night’s rally on Wall Street with the S&P500 four hourly chart showing a possibly return to last weeks highs around the 6800 point level next:
The economic calendar includes the latest ECB review then US initial jobless claims and durable goods orders.