Australian Dollar

It sounds huge.

DXY is hanging on again.

The release of a set of “real” FOMC minutes sent Wall Street lower overnight as the Fed reiterated its fears about a US recession in the wake of the Trump regime’s tariffs, even with all the TACO drippings that seem to follow each new threat and bluster.

A couple of comments from the BOJ over the Japanese bond market and the ongoing trade war with the US didn’t upset most risk markets in Asia as they move in correlation with a resurgent Wall Street.

You need US dollars to buy US assets.

Wall Street returned with a bang after its long weekend break with a 2% plus surge across the board in response to the 180 degree spinning top EU Trump tariffs, which should give Asian equities a bounce on the open this morning.

Risk markets in Asia are doing a little better despite the lack of a lead from a closed Wall Street with the focus on positive Chinese industrial production numbers.

It is clear that the world wants to sell DXY.

With Wall Street closed for the long weekend, most risk markets reacted positively to the 180 degree spinning top EU tariffs by the Trump regime, with European shares taking back their Friday night losses.

Risk markets in Asia were mixed to start with on the Trump regime EU tariff bomb from the weekend gap but then the inevitable 180 spin got stocks at least somewhat back on track while currency markets continue to selloff the USD, believing the facts behind the demented spin.

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DXy is breaking down again.

Risk markets in Asia are somewhat mixed in the last session of the trading week as they absorb the burgeoning bond troubles and the passing of the Trump regime’s tax bill in the House of Reps that looks to enshrine a permanent decline in the US fiscal position.

DXY held on last night.

Risk markets were relatively sanguine overnight as the Trump regime’s new “Tax” Deal (aka blowing out the deficit forever) passed while the latest flash PMIs suggested a slight uptick in confidence in the US despite the tariff chaos in the last month.

Risk markets in Asia are mainly stepping back in response to the falls overnight on Wall Street but more so on the burgeoning bond troubles as the US fiscal position looks to go into permanent deficit decline with the imminent passing of the Trump regime’s “tax” aka wealth redistribution billr.

The Market on the return of bad.

DXY no bueno.

Its all about bonds overnight with the Japanese selloff extending to US sovereign debt as the latest Trump “Tax” Deal (aka blowing out the deficit forever) and a weak 20 year auction saw yields rise to new heights across the curve.

DXY down.

Although the macro newsflow was relatively light on overnight it was all about the bond and currency markets as the latest Canadian inflation numbers following yesterday’s cut by the RBA led to further introspection on the trajectory of the ECB, which has led to the USD being pushed back across the board.

Risk markets in Asia are somewhat mixed in reaction to the flat sessions on Wall Street overnight with the Friday night cut by ratings agency Moody on US debt still reveberating, particularly within bond markets.

DXY sagged as stocks came off.

Uncertainty seems to be returning to risk markets if you look beyond the headline stock indices with the Moody rating cut still reverberating amid geopolitical concerns over Russia, Gaza and the impending hurt from the Trump tariffs.