Australian Dollar

Risk sentiment tried to change course on Friday following a relatively solid Asian and European session as the stimulus problem in the US was exarcebated by a negligent Republican Senate and a divergence in views between Trump’s Treasury and the US Federal Reserve.

DXY was stable Friday night: The Australian dollar fell a touch: Oil and gold both rose: Metals are off to the races: Miners were firm: EM stocks too: Junk was fine: Treasuries bid: Stocks fell again: The virus is still the story.

Risk sentiment is still very cautious as optimism over vaccines outweighs concerns over rising COVID cases and economic restrictions. Wall Street rallied on the close on rumors of possible stimulus progress in Congress (which is the opposite of progress I think someone once said).

DXY was down last night: But the Australian dollar fell anyway: Gold weakened again, oil lifted: Metals are on a tear: Miners struggled: EM stocks did OK: Junk is back: Treasuries were bid: Stocks did the two-step reversion from value to growth as yields fell.

Stock markets are somewhat mixed throughout Asia, with only Japanese bourses dragging the chain as the USD continues to strengthen against all the major currencies.

Risk markets remain poised between hope and fear, illustrated last night when the news of the Pfizer vaccine increased efficacy was unable to repeat the previous positive reaction, while additional COVID economic measures saw Wall Street stumble at the close.

DXY was down and is at the cliff’s edge again: Gold is oddly weak given the falling DXY.

Stock markets are quite mixed throughout Asia, although the local market is surging again, with further COVID cases in Japan partiuclarly weighing.

Bitcoin continues to outperform gold in recent price action: However, it still hasn’t broken its recent range: Will it?

DXY kept falling last night and is at obvious support.

Stock markets still want to go higher here in Asia, but momentum is waning after being so overbought for so long.

Nobody can stop the music on risk markets with more extensions of overbought rallies across the Atlantic overnight after solid sessions here in Asia yesterday.

DXY was down last night: The Australian dollar is uber-bid once more: Oil was firm and gold weak in the circumstances: Metals are in heaven: Miners to the moon!

Stocks are being bid left right and center across Asia, although Australian traders should’ve had a long weekend since the ASX has had tech issues all day long, unable to trade.

Risk markets returned to a state of hopium on Friday night despite the disaster unfolding in Europe and the US as COVID infections go off the charts.

DXY was down Friday night: The Australian dollar up: Oil fell.

The expected retracement in wildly overbought stocks following the Pfizer vaccine surge continued overnight on both sides of the Atlantic.

  Vaccine volatility continues to pullback extremely overbought markets across the region – save Japan – with the USD gaining strength against most of the majors going into tonight’s inflation report.

Stock markets were moderately positive overnight although a return to strength for USD dampened some risk expectations, alongside the massive surge in COVID cases in the US and Europe.

Vaccine volatility has abated in mixed fashion across the region with Chinese shares unsettled, with not much action on currency markets except Kiwi which jumped on the RBNZ meeting.

DXY is stalled perhaps in part by the European virus which hardly makes a EUR bid exciting: The Australian dollar likewise Gold bounced: Oil took off.

The Pfizer vaccine surge is consolidating after two nights of modest reaction from Wall Street, as tech stocks continue to selloff in the wake of the US election.