Asian stock markets are relatively benign as we head into the week long Chinese New Year holiday period with traders focusing on the return of the RBA to the non-decision making table as it plays catchup to the USD behemoth and Omicron outbreak over its very long holiday break. The USD is falling back slightly against the major currency pairs, continuing the mild reversal seen overnight although gold remains on the floor, stuck below the $1800USD per ounce level but possibly building to a breakout here:
Mainland and offshore Chinese shares are closed for Chinese New Year and won’t be back until next week, with Japanese stocks markets the focus for now. The Nikkei 225 closed 0.3% higher at 27089 points in a mild session despite the stronger Yen as the USDJPY pair is slowly deflating back to its previous breakout and weekly highs below the 115 handle as it cannot get past substantial overhead resistance here:
Australian stocks were able to absorb the RBA non-decision decision making with the ASX200 closing 0.5% higher to just get back above the 7000 point level at 7006 points, while the Australian dollar fell at first, losing around 30 pips before stabilising at the 70.60 level post the RBA meeting with the USD still too strong:
Eurostoxx and Wall Street futures are again lifting somewhat going into the London open, with the S&P500 four hourly chart showing price holding above previous key overhead resistance area at the 4430 level with the next are to watch at the 4500 level proper:
The economic calendar continues with German unemployment, and the US ISM Manufacturing print.