Chris Becker

Asian share markets are doing quite well in the final but relatively quiet session of the trading week with the USD falling overnight on the bad but good initial jobless claims showing a soft US labour market helping supporting the risk taking.

A wobbly night on Wall Street due to Oracles earnings but also a “normalised” US initial jobless claims print proving the labour market is soft as the Fed claimed in its rate cut the previous session.

Wall Street loved the rate cut from the Fed last night and the apparently neutral not hawkish future position espoused by Fed Chair Powell.

The latest Chinese inflation numbers were slightly higher than expected which has seen the potential for a BOC RRR cut next year move lower, also pushing mainland shares down as well.

The Pacific Peso is on fire even before the RBA’s “hawkish hold” at yesterday’s meeting, keeping in on its short term trend that has seen it breach and hold the 66 cent level against USD.

Wall Street remained in a hold pattern overnight as everyone awaits the FOMC meeting with a selloff in Treasuries keeping USD somewhat supported, particularly against Yen while European shares also went nowhere.

All eyes on the RBA in its last meeting of the year today with a hawkish hold the expected outcome which gave the Aussie dollar a small boost but stocks didn’t like the result.

It’s decision day at Martin Place as the Reserve Bank of Australia meets to pull or not to pull – that is the question – the interest rate level.