Australian dollar bludgeoned as local stocks gain

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by Chris Becker

The reaction from Friday nights headline US unemployment figures has been modest so far in currency land on the post-weekend open here in Asia, partially due to long weekends for Japan and Singapore.

Interestingly, the PBOC has weakened Yuan sharply against USD with its latest on shore fix, bringing it up to 6.9649 from Friday’s 6.94 with offshore trading rebounding in kind. The monthly trend from the May high remains down however as USD weakens against almost everything:

The Australian dollar had the hardest hit on Friday night, pushed well below the 72 handle after having a solid week and its done little to show any type of weekend reversal of fortune is underway, with a very small bid this morning that’s gone nowhere:

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Local stocks are the only ones rallying (or open), despite the continued straining of US/China relations on the weekend, and the fleeting nature of Trump’s executive orders to provide more stimulus for the US economy, with the ASX200 up 1.5% in afternoon trade:

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Too bad Jacinda is keeping the Trans-Tasman bubble ephemeral because the Kiwi cross is at a yearly high – great time to go holidays in NZ (it’s always a great time to holiday in NZ), although the Aussie is looking considerably overbought here:

And gold is having a bad day, relatively speaking, after falling some $40 on Friday night, down another $10 or so but steady as traders prep for the London fix, currently at $2029USD per ounce and sitting on four hourly support – watch the $2000 level closely:

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