Australian Dollar

Friday night saw a weaker DXY which helped drive a pop in the Australian dollar and risk assets generally: Brent jumped out of its swoon.

Risk sentiment came back overnight with both European and Wall Street bouncing back as volatility on bond markets pulled back slightly and the USD continued to lift on the back of strong initial jobless claims overnight.

Capitulation by Australian dollar analysts that is.

Asian share markets are extremely mixed in today’s session with Japanese stocks rebounding while Chinese shares remain nearly unchanged in response to last night’s selloff in tech stocks on Wall Street.

Tech stocks fell sharply again on Wall Street as volatility around currency and bond markets was abated somewhat, despite the release of solid flash PMIs and a poor durable goods order print blamed mainly on the weather.

Asian share markets continue to fall across the region, save locally with the poor lead from Wall Street and rising concerns over COVID in Europe with Chinese shares leading the way again.

More lockdowns across Europe and less risk taking saw Wall Street fall overnight with tech stocks leading the way again as the USD firmed against everything with Pound Sterling and Euro making new weekly lows although Yen remained firm.

For many years, far more than I would ever have thought possible when the MB journey began, we have campaigned for a simple change in philosophy among Australian policymakers.

Asian share markets have ignored the good lead from Wall Street overnight and have continued their very mixed start to the trading week with Chinese equities selling off fast in the wake of the US/Allied sanctions, while Japanese and local markets tread water.

The USD retreated overnight slightly, helping risk currencies like the Australian dollar as the bond market settled with 10 year Treasury yields pulling back to the 1.70% level.

DXY faded its opening gap yesterday as markets ran out of inflation news to trade upon.

Asian share markets are having a very mixed start to the week in response to an equally mixed mood on Wall Street on Friday night with the fallout from the run in the Turkish Lira following the weekend sacking of the central bank governor has seen many risk currencies gap lower against USD.

More great work from Nordea today: The USD should be rising 20% in YoY terms instead of falling 15% according to relative growth expectations.

Wall Street was again all over the place on Friday night with tech stocks rebounding after the NASDAQ fell over 3% on Thursday while the rest of the risk complex fell following the moves in Asian and European equities.

It is fascinating to watch macro analysts diverge into three distinct narratives covering the future of this business cycle.

The Australian dollar was soft again Friday night as DXY rallied.

Asian share markets are finishing the week in selloff mode in response to the falls in tech stocks on Wall Street overnight and the continued uptrend in sovereign bond yields.

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.