ASX set to recover, bitcoin holds near $US20,000 as investors fear ‘domino effect’

Australian shares are set to finally rebound, after plummeting for seven straight trading days into correction territory on high inflation and recession worries.

ASX futures were up 0.8 per cent, to 6,392 points, by 7:10am AEST on Tuesday.

The Australian dollar rose slightly, to 69.5 US cents.

Local investors will be paying close attention to the words of Reserve Bank Governor Philip Lowe to see whether he offers any hints on the size of the next rate hike (tipped for July 5).

Dr Lowe will deliver a speech at 10am AEST, entitled Economic Outlook and Monetary Policy.

Meanwhile, the cryptocurrency industry was on edge as bitcoin held just above $US20,000 and investors feared that problems at major crypto players could unleash a wider market shake-out.

Oil prices swung higher in volatile trading, with Brent crude futures rising 0.9 per cent, to $US114.13 a barrel.

Spot gold was little changed in holiday-thinned trading, at $US1,837.46 per ounce.

More volatility ahead

Wall Street was closed for the Juneteenth public holiday, while European markets recovered some of their losses from the recent sell-off.