Australian Dollar

After a very solid start to the trading week, Wall Street stumbled overnight yet again on more FedTaper talk as officials were unable to allay fears about”transitory” inflation.

The story of forex right now is the rise of the Euro as the continent gets its vaccine together and hurtles towards reopening.

It’s green across the board here in Asia, with Chinese stocks leading the way as a risk on mood pervades stock markets despite the dramatic pullback in iron ore prices  The USD is weakening against most of the majors, particularly Euro and Yen but especially losing a lot of ground against Chinese Yuan today.

UBS with the note: We expect the USD to continue to depreciate this year in line with the recovery of global growth, but we forecast a broad-based USD rebound next year.

Wall Street has started the trading week with a bit more confidence despite yet more talk of tapering and high inflation from Federal Reserve members overnight.

The forex markets are beginning to acknowledge the MB script ahead for weakening inflation as China hits the brakes.

Asian stock markets have had a steady start to the trading week with some mild sessions across the region, following quite a tepid finish on Wall Street on Friday night.

Friday night saw yet another mixed finish on Wall Street with sentiment continuing to sour risk appetite with the latest US home sales data overshadowed by yet more taper talk from a variety of Fed officials.

Forex markets were relatively unexciting Friday night but under the surface significant moves took place as DXY firmed, commodities slumped yields fell back with them.

Asian stock markets are putting in very mild sessions to finish the trading week after a tepid bounceback in the previous session despite a solid lead on Wall Street overnight.

Overnight saw some upside volatility return to equity markets due to a mish mash of good and bad economic news and some further FedTalk from hawks and doves over the coming tapering (or not tapering) of the US economy, plus the jumbles around the ever interesting labour market.

DXY was down again last night after its brief flirtation with unexpectedly hawkish Federal Reserve minutes.

Stock markets are putting on a mild bounceback across Asia following the volatile moves on overseas markets overnight, with Wall Street overreacting to the latest FOMC minutes.

Yesterday I identified (that is, made up) the disastrous four-headed hydra crypto chart pattern.

Volatility is raising is ugly (or beautiful) head again with risk markets wildly oscillating overnight as the latest FOMC minutes point to a possible change in the tapering of grand old stimulus measures in the months ahead.

For much of the evening the US dollar was headed back into the abyss and the Australian dollar marching higher.

Inflation concerns are still rocking stock markets with Asian bourses deep in the red in today’s session, with more inflation data from Europe (and the UK) out later tonight.

Mwahaha. The disastrous four-headed hydra pattern has appeared on BTC’s crashing chart (and yes, I just made that up but I expect a Hydracoin to appear very shortly after this post): Today’s problem?

HSBC with the note.

Another discerning change in confidence and sentiment overnight with Wall Street sharply reversing in the last hours after being up throughout most of the session.

The weakness afflicting the US dollar since its questionable labour market report continued overnight.

Stock markets are finally finding their feet here in here in Asia after a wobbly start to the trading week, with Japanese stocks advancing strongly after a big stall yesterday.

It’s fair to say that I’ve given crypto a fair hearing.

An inability to find confidence hindered risk markets overnight, with only commodities putting on gains with European and US stocks pulling back after what was a solid finish on Friday night.