Australian Dollar

DXY is back in a big way.

The rebound from overnight was only followed through on local markets with the rest of the Asian risk complex still lacking the confidence to ride the BTFD wave.

This makes more sense to me than 90 cents: AUD … is worst-placed for a US-China decoupling, the RBA’s Debelle just gave a speech in which he said a lower AUD would be beneficial to support the economy, and that higher public debt levels (which the RBA will support) are not a problem.

Via Bill Evans at Westpac: In a speech yesterday the Deputy Governor of the Reserve Bank gave a fairly clear hint that the Board is set to cut the cash rate and other key policy rates at its October Board meeting.

Risk sentiment bounced back overnight following a stumbling start to the week with Wall Street leading the charge but the USD continued to firm against the majors and precious metals.

Only a decade late, the Lunatic RBA has discovered that unconventional monetary policy will lower the Australian dollar and aid recovery: see chart 7 espeically.

The selloffs continue here in Asia following the rout on European markets overnight, with the late fill on Wall Street not extending throughout the risk complex as USD firms.

Via North West Strategy: After the early surge in the activity post the lifting of initial nationwide lockdowns, the Australian economic growth recovery has been mixed since the resurgence of cases and fresh lockdown in Victoria.

The Australian dollar is down a little after the Loon spake: Stupidly, the Aussie curve is still steepening: XJO is rolling into a swan dive.

It was a bath of blood on European stock markets overnight with Wall Street, precious metals and commodities then tumbling in response, then a late fill by the BTFD crowd saw some of this clawed back, but confidence is shattered nonetheless.

DXY is stong again and has formed a head and shoulders bottom.

Asian stock markets have begun the trading week in a mixed fashion, with Japanese markets closed as the risk complex takes a deep breath after Friday’s falls on Wall Street.

Wall Street took another tumble on Friday night, knocking it back to a six week low (although the NASDAQ is still up over 30% for the year) as a sea of red pervaded European bourses as well.

A late surge in stock buying, pushed by Chinese shares has seen most Asian share markets recover from earlier losses, while currency markets are again firming against USD going into the end of the trading week.

Another sea of red on overnight markets last night with Wall Street stumbling while other risk assets lifted higher.

Markets are sliding into risk off mode today in Asia following the sour mood on Wall Street overnight with a sea of red on all bourses.

By Chris Becker  The latest US Federal Reserve meeting last night didn’t provide the punchbowl that risk markets were expecting, even though interest rates are going to at zero for years to come.

  Markets inverted their risk profile today in Asia with Chinese stocks selling off as the Yuan surges against USD, Japanese markets tread water and local shares lift strongly in line with Wall Street overnight.

It’s just awful listening to the lunatically conservative RBA, via yesterday’s minutes: The US dollar had depreciated significantly against the currencies of other advanced economies over recent months, including the Australian dollar.

By Chris Becker  Last night saw a continuation of the bounce on Wall Street, while a stronger than expected ZEW Survey still failed to ignite animal spirits across Europe, although better employment stats from the UK saw the FTSE move significantly higher.

Markets are quite mixed in Asia today despite the strong surge on Wall Street overnight and the positive Chinese data with only Chinese equities really putting any runs on the board.