Australian Dollar

Better hopes for a stimulus package from the US Congress is sending the USD down and risk up across Asia today, with strong moves locally as the iron ore price keeps heading to the moon.

It was all about the stimulus last night as the electoral college voted in Biden as President, and Senate Leader and all round a$$hole on two legs Mitch McConnell congratulated the new president, sending risk markets higher on the prospect of no more stumbling blocks within Congress.

A dour day for risk for Asian stocks, with a sea of red across the region as traders react to the latest COVID economic restrictions.

Risk markets remain extremely mixed in sentiment going into the end of the year with further economic restrictions in Europe and COVID vaccine distribution pulling and pushing confidence, not to mention the volatility from the US presidential election outcome.

DXY was soft last night as EUR flew: The Australian dollar is still flying free: Gold and oil eased: Metals were mixed: Miners rolled: EM stocks too: Junk is fine: Treasuries bid: Stocks held: Westpac has the wrap: Event Wrap Europe announced further Covid-related restrictions.

A solid start to the trading week for Asian stocks, outside of Hong Kong, with the USD mixed against the majors as S&P futures start to gain.

Markets continue to watch gyrations in US government spending and non-stimulus actions with Wall Street wavering on Friday night as European stocks went into retreat mode as COVID deaths continue to rise across the continent.

Via Westpac: At its December meeting the Reserve Bank Board decided to maintain the policy settings it adopted at the November Board meeting.

A record number of COVID cases in Germany is dampening spirits again going into the final session of the week with most Asian stock markets in retreat mode.

While the ECB delivered more easing in its latest meeting overnight, equities were not that impressed with Wall Street slipping again and stocks mixed throughout the continent, not helped by a “no-deal” Brexit now firming.

DXY resumed falls last night: Australian dollar whoa! Oil and gold up: Metals madness: Miners lagged a bit: EMs are close to all-time highs: Junk eased: Treasuries bid: Stocks fell again: Westpac has the wrap: Event Wrap US Nov. CPI rose +0.2%m/m (est. +0.1%m/m), for an annual pace of 1.2% (vs est 1.1%).

Record death tolls from coronavirus in the US is putting a dampener on risk spirits with most Asian stock markets in retreat or treading water as currency traders await tonight’s ECB meeting.

Risk markets ran out of puff overnight as the prospect of a meaningful stimulus package from the US Congress waned, with Treasury yields moving higher and risk currencies rangebound as a result.

Outside China, Asian stock markets are pushing higher today despite dashed hopes of more stimulus from the US Congress, and some of the worst days in Europe for new COVID-19 infections and deaths, let alone the out of control pandemic in the US.

Wall Street re-engaged the fear of missing out rally again overnight, sending the S&P500 to a record high in the midst of the coronavirus pandemic at its worst stage (so far).

Most Asian stock markets are struggling to find direction today after the tepid sessions on Wall Street overnight as traders remained confused to the response of the latest US unemployment print.

Via Coingeek: A U.S.

A wobble in the risk complex overnight, put down to concerns over the out of control pandemic in the US but really due to a lack of economic events and/or news about further stimulus from the US Congress.

Outside local markets its been a very poor start to the trading week with most Asian stock markets closing with solid losses, following what was a very upbeat night on Wall Street in response to the latest – and poor showing –  US unemployment print.

Can the ECB squash the Australian dollar rally?

Bad news is good news as Friday night’s NFP (non farm payrolls aka US unemployment print) was so bad, it was good news for stocks as Wall Street headed to record highs in the middle of a severe pandemic and growing recession.