Australian Dollar

  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.

Vaccine volatility has provided various opportunities across risk markets here in Asia following the Pfizer announcement overnight that saw European markets surge 5% or more.

DXY rebounded last night: Australian dollar pumped and dumped vs US and went parabolic elsewhere: EM to the moon: Brent ecstasy!

Its a day of excitement across risk markets here in Asia following the pause on equity markets on Friday night, absorbing the Biden election victory and the better than expected US jobs figures over the weekend.

Via UBS: AUD & NZD: Upside risks to front-end NZD rates; RBA QE + CLF = lower AU 10y The RBNZ hasn’t been providing a forecast path for the OCR for the quarters after March-21; but we expect this to change at the 11 November MPS (see here for our preview).

Stock markets stalled throughout the risk complex on Friday as the US election finally came to somewhat of a conclusion with Trump losing, while the better than expected and highly anticipated non-farm payrolls (aka US unemployment print) wasn’t able to push equities higher.

Its a day of retracement as expected across risk markets here in Asia following big surges across stocks, commodities and non-USD currencies after the US election.

Lot’s of excitement over this: As I have noted many times, BTC and gold share an investment narrative insofar as both are seen as hedges against USD debasement.

Stock markets continue to love the US election non-outcome as Europe and Wall Street lifted again overnight with Treasury yields coming back slightly as currency markets went into violent anti-USD mode.

Yet another green day across risk markets here in Asia as all the hand wringing over the US “election” has come to naught, with all traders hitting the buy button, regardless of the outcome.

Stocks continue to love the US election non-outcome as both Europe and Wall Street surged overnight while Treasury yields retraced sharply lower as the hope of any stimulus faded with a locked or GOP senate (same thing really).

What a day!

Stocks are loving the US election as Europe and Wall Street advanced overnight and continued to move higher in futures – a stark difference to the 2016 election.

DXY got hammered last night: The Australian dollar blasted off: Gold was firmer: Oil too: And metals: Miners went vertical: EM stocks lifted: Junk firmed: Treasuries sold again on the inflation bogey: Buy stocks! Westpac has the wrap: Event Wrap US September factory orders rose +1.1%m/m (est. +1.0%m/m, prior +0.6%m/m revised from +0.7%m/m).

More green across Asian stock markets today as traders discount concerns leading into the most volatile trading week (and month?) of 2020.