Australian Dollar

BofA on Bitcoin: Bitcoin supply is artificially scarce, demand drives prices Just like in other commodities, supply and demand drive Bitcoin prices.

Tech stocks took a terrific pounding overnight with the NASDAQ falling over 3%, dragging the rest of the risk complex down with it as the bond market continues its implosion post the FOMC meeting.

The Australian dollar was hammered last night as the fallout from the Fed meeting continued.

Asian share markets are largely trending higher in response to the surge on Wall Street overnight, however local markets have fallen back on a white hot unemployment print that has sent the Aussie dollar higher.

Last night saw the Federal Reserve FOMC meeting leaving policy settings unchanged and very accomodative with the USD selling off sharply against the major currency pairs as a result while Wall Street found some lost confidence later in the session.

The Australian dollar took off last night after the FOMC meeting concluded with a dovish statement.

Asian share markets are back tracking from their previous bullish run in response to the very mixed lead from Wall Street overnight as the bond market continues to signal higher yields ahead.

Wall Street was very quiet and risk averse overnight while European bourses continued the bullish trend from the Asian session as US traders await tomorrow’s FOMC meeting.

Slowly but surely my base case that the US dollar weakness that has dominated markets for the past six months is over and a new upturn has begun is spreading into mainstream forex commentary.

Asian share markets are getting more bullish after their lacklustre start to the trading week yesterday with risk expectations rising on stimulus hopes from the US and probable much higher Treasury yields.

The Australian dollar fell again last night despite a general bid for risk as DXY lifted.

Share markets are have a tepid start to the trading week, although a late surge on Wall Street this morning could provide a bit more fire for Asian equities to get moving on the open.

A mixed start to the trading week here in Asia, following an equally mixed finish on Wall Street on Friday night with most stock markets putting in very minor gains or scratch sessions, although mainland Chinese markets continued their selloff.

Via Morgan Stanley: Most market participants and policy-makers have been surprised by the speed of the recovery.

Over the weekend, Bitcoin hit a new record high against both the US dollar and gold.

Friday night saw the release of US PPI inflation and European industrial production numbers, both meeting expectations but resulting in currencies round tripping with tepid finishes to the trading week on most equity markets, as the NASDAQ slumped in the wake of higher bond yields.

The Australian dollar was hit again on Friday night as the US dollar rallied with higher yields and commodities rolled over with tech stocks and emerging markets.

Almost complete green across the board on Asian stock markets as the signing of the huge US fiscal stimulus continues to act as a very positive catalyst across risk markets with a lower USD also elevating risk currencies like the Australian dollar and commodities.

The ECB meeting produced no surprises but continued the inflection on USD which continued its minor pullback, extending losses against the major currencies with gold trying to stay above the $1700USD per ounce level.

The Australian dollar soared on Icarus wings last night.

The latest US fiscal stimulus is acting as a positive catalyst across risk markets with Chinese mainland shares finally bouncing back after some soothing words from state media after a dreadful start to the trading week.

US inflation data was slightly weaker than expected but this buoyed Wall Street – outside tech stocks – as the Fed’s expectations of more accomodation were met.

Asian share markets are pulling back late in the session with Chinese mainland shares stabilising somewhat after a dreadful start to the trading week and despite the continued bounce on Wall Street overnight.

Equities were aligned finally last night as US tech stocks rebounded sharply as the USD finally reversed direction after making new highs against almost every undollar asset out there in the wake of the bond market implosion.