Australian Dollar

JPM: The virus crisis, by boosting money supply as well as demand for an “alternative” currency, has supported both gold and bitcoin over the past year.

Wall Street finished Friday with another whimpering session as risk spirits abated through most of the trading week.

Friday night saw the Australian dollar roar higher virtually by itself.

Asian stock markets have all broadly sold off in response to the poor lead from Wall Street throughout the short trading week, as strong US economic data continues to push risk sentiment lower.

In a crazy world, the rational is irrational and the irrational rational.

As noted yesterday, the Australian dollar is suddenly caught between the thermal of reflation and commodity prices versus the wind shear of rising US bond yields and inflation.

Wall Street dropped for the third day in a row despite yet more strong economic and pandemic data with USD finally pulling back after its week long trend upwards.

Asian stock markets are mixed given the lack of confidence on Wall Street overnight, as strong US economic data continues to push the USD higher and leaves the risk markets a little hesitant.

Strong economic data from the US is haranguing risk sentiment with the USD strengthening once more on the presumption that the easing may ease off sooner than expected.

Asian stock markets are somewhat mixed given the stumble on Wall Streets return from a long weekend overnight, with overextended Japanese stocks falling back the most as expected while mainland Chinese risk markets remained closed for NY holidays.

Wall Street returned from its most ironoic holiday over night and stumbled, pulling back European stocks and potentially upsetting the groove that started in Asian equities at the start of the trading week.

Asian stock markets have doubled down on their great start to the week with gains across the region, including the return of some Chinese markets.

Wall Street was on holiday last night but that could not stop the bulls with European stocks putting in a twelve month high as positive risk sentiment across the risk complex cannot be held back.

There are three sources of strength for the Australian dollar when the greenback falls.

Asian stock markets have started the week in an ebullient mood given the solid lead from Wall Street on Friday night with the USD given back ground against the major currency pairs as US Treasury yields continue to spike higher.

Friday night saw a continuation of positive risk sentiment across the risk complex with Wall Street lifting higher as it goes into a long weekend holiday.

The Australian dollar lifted again Friday night despite local economic woes attached Dictator Dan’s renewed Melbourne lockdown.

Asian stock markets are generally lower given the wavering confidence on global stocks with Chinese bourses closed due to NY holidays.

Initial weekly jobless claims in the US spiked a little higher than expected, with continuing claims also climbing higher but that didn’t dampen all risk spirits with Wall Street edging slightly higher.

As stated, my outlook for the Australian dollar is ongoing gains into the low-80s this year.

Asian stock markets are generally higher except for local stocks despite continued mixed leads from Wall Street and European stocks overnight with local currencies still strong despite the USD coming back a little against the majors in the wake of the lower US inflation print.

I am consistently surprised at how thin-sliced Wall Street analysis is.

US inflation data for January was much lower than expected, which took the edge of the weak USD meme running through currency markets as stocks also stumbled on Wall Street .