Cautious Trade to start the week, EUR/AUD Focused

Australia’s ASX 200 index fell by -96.3 points and currently trades at 6,898.50.
Japan’s Nikkei 225 index has fallen by -360.97 points and currently trades at 26,972.82.
Hong Kong’s Hang Seng index has fallen by -534.15 points and currently trades at 18,984.44
China’s A50 index has fallen by -28.90 points and currently trades at 12,866.03

UK and Europe:

UK’s FTSE 100 futures are currently down -16.5 points, the cash market is currently estimated to open at 7,318.90
Euro STOXX 50 futures are currently down -35 points, the cash market is currently estimated to open at 14,733.20

US Futures:

DJI futures are currently down -30 points
S&P 500 futures are currently up 2.25 points
Nasdaq 100 futures are currently up 16 points

It has been a quiet session overnight, as traders wait to see how Europe reacts to the weekend’s headlines.

The Fed, ECB, BOJ, SNB, BOE and BOC have coordinated action to boost liquidity via their standing swap arrangements to support financial stability.

Gold has also pulled back from its 11-months high of $1990.75, which leaves the potential for a retracement towards the $1960 high – but it is clear that investors are not yet ready to dump the safe-haven metal and may well have another crack at $2000.

EUR/AUD is trying to snap a 5-day losing streak and carve out a swing low around a support cluster. Last week’s low respected a 38.2% Fibonacci ratio, trend support and the daily closes held above the monthly R1 pivot. Should prices hold above last week’s low the bias is for a move towards the monthly R1 pivot around 1.6100.