- Asian stock markets have continued to fall after the Chinese government announced new rules widely seen as negative for the technology and education sectors. The Chinese Hang Seng and Japanese Nikkei 225 indices are trading lower near their 2021 lows. US stock markets are lower but still very bullish.
- Australian CPI (inflation) data came in slightly higher than expected over Q2 2021, increasing by 0.8% ahead of the anticipated 0.7%. This puts Australian inflation at an annualized rate of 3.8%. The data release had little impact on the Australian dollar. The lockdown in Sydney has just been extended by a further 4 weeks.
- US Consumer Confidence data came in somewhat higher than had been expected.
- Later today we will see what is usually the most important event in the monthly Forex calendar: the FOMC statement and federal funds rate, which typically moves the USD which is the main driver of the wider Forex market.
- There will be a release of Canadian CPI (inflation) data today.
- Bitcoin bulls are again testing the $40k area, but so far have failed to produce a sustained breakout. Bitcoin is looking more bullish than Ethereum.
- In the Forex market, the British pound is showing the greatest short-term strength, while the Australian dollar seems to be the weakest major currency. The U.S. Dollar Index remains in a valid long-term bullish trend, but faces strong overhead resistance at 11974.
- Last week saw a fifth consecutive weekly rise in global new confirmed coronavirus cases, suggesting that the pandemic is advancing again due to the spread of the more highly infectious Delta (Indian) variant, which vaccines are clearly less effective against at least in terms of preventing infection. New data from Israel suggests the effectiveness of vaccines may drop greatly after only a few months, but British data contradicts such strong findings.
- It is estimated that 27.5% of the world’s population has received at least one vaccination against the novel coronavirus.
- Total confirmed new coronavirus cases worldwide stand at over 195.9 million with an average case fatality rate of 2.14%.
- The rate of new coronavirus infections appears to now be increasing most quickly in Algeria, Australia, Burma, Cuba, Finland, France, Georgia, Greece, Guatemala, Honduras, Iceland, Japan, Kazakhstan, Kenya, Laos, Malaysia, Morocco, Philippines, Spain, Uzbekistan, Vietnam, and the United States.
Forex Today: Asian Stocks Head Lower
Adam Lemon
Asian stock markets continue to fall on Chinese regulation concerns.