Australian Dollar

Outside local markets its been a tepid end to the trading week with most Asian stock markets looking to close with minor losses going into tonight’s US unemployment print.

Wall Street stalled out again with only tech stocks gaining while the USD fell back against most of the majors despite better than expected initial jobless claims in the US in a fairly tepid session that only really saw the FTSE and Pound Sterling gain on continued Brexit talks.

DXY is down, down: The Australian dollar has broken out: Gold and oil and running: Metals fell: Miners shimmy, shimmy, whoosh!

A small rebound in risk appetites here in Asia today despite the mixed messages overnight with most stock markets rising on the chances that more stimulus from the US Congress may actually be on the way (Mad King aside not signing it).

Wall Street stalled out at record highs again overnight with tech stocks retreating slightly as no news of the proposed stimulus from Congress pulled USD back again.

The expected follow through of risk taking from Wall Street has not occured in Asia today with scratch sessions throughout the region on stock markets.

Via the always provocative GaveKal: Throughout my career, I have always found that it pays to bear in mind Jacques Rueff ’s notion of US “imperial privilege.” Put succinctly: the US has long been the only country able to settle its current account deficits in its own currency.

Another swing back to risk sentiment overnight with stocks on both sides of the Atlantic surging while the USD fell back against the majors as gold also lifted back above $1800USD per ounce.

DXY is into its widely expected post-COVID swoon.

Risk appetites are back with generally good sessions across the regions stock markets with the latest RBA meeting – a hold – not exciting animal spirits that much in currency land.

Month end selling dominated overnight markets but it was also a big bounce in USD fortune that dampened risk appetite, with European stocks off by more than 1% while Wall Street eventually stumbled to about half that loss.

The higher than expected PMI prints in China today and sending stock markets in the Middle Kingdom higher while other bourses across Asia are in retracement mode despite the solid lead from Wall Street from Friday.

A nice piece by GaveKal: 2) The renminbi and 10-year US treasury yields The chart above shows the same periods of renminbi strength and weakness, but this time overlaid by the 10-year US treasury yield.

The Tesla bid sent Wall Street up higher on Friday night following the return on traders from the Thanksgiving holiday with European markets putting in a good show despite a big spike in Euro, as the USD went down across the board.

Stock markets are stumbling along across Asia after no lead from Wall Street overnight due to the US thanksgiving holiday.

Late last year, the Australian dollar fell one cent in a second when China first started playing sill buggers with Aussie coal.

A very quite night on risk markets with most US markets closed due to Thanksgiving with an expected slow and quiet end to the trading week here in Asia.

Stock markets are largely higher across Asia but there more buying exhaustion is setting in as risk takes a break tonight for the US thanksgiving holiday.

A slew of economic releases with mixed results kept risk sentiment at bay overnight with industrial stocks on Wall Street falling back while European bourses tread water.

DXY is at breaking point: The Australian dollar is at break out point: Gold held, oil surged: Metals are unstoppable: Miners did stop: EM stocks are lofty: Junk was firm: Treasuries bid despite oil: Stocks rotated back to tech: It’s more of the same.

Stock markets are largely higher across Asia but there is some buying exhaustion setting in as the positive spin on the US election and vaccine news begins to wane despite the record high on the Dow Jones overnight.