Chinese markets pare early gains, ‘risk off’ pressure returns

FXStreet (Bali) – After a promising open of +2.2%, the Shanghai Comp is now firmly in the red, currently trading -2% – bounce now seen as possible intervention chatter continues -, with ChiNext down by 5% at one stage.

This turnaround has caused risk averse bids to return into the market, with the Yen benefiting by trading close to 118.00 after peaking at 118.60. Meanwhile, the AUD/USD has lost key support at 0.7050, now seen as resistance again.

After a promising open of +2.2%, the Shanghai Comp is now firmly in the red, currently trading -2%, with ChiNext down more than 5%. This turnaround has caused risk averse bids to return into the market, with the Yen benefiting by trading close to 118.00 after peaking at 118.60. Meanwhile, the AUD/USD has lost key support at 0.7050, now seen as resistance again.

(Market News Provided by FXstreet)