Australian Dollar

Most Asian stock markets are struggling to find direction today after the tepid sessions on Wall Street overnight as traders remained confused to the response of the latest US unemployment print.

Via Coingeek: A U.S.

A wobble in the risk complex overnight, put down to concerns over the out of control pandemic in the US but really due to a lack of economic events and/or news about further stimulus from the US Congress.

Outside local markets its been a very poor start to the trading week with most Asian stock markets closing with solid losses, following what was a very upbeat night on Wall Street in response to the latest – and poor showing –  US unemployment print.

Can the ECB squash the Australian dollar rally?

Bad news is good news as Friday night’s NFP (non farm payrolls aka US unemployment print) was so bad, it was good news for stocks as Wall Street headed to record highs in the middle of a severe pandemic and growing recession.

DXY was up Friday night: The Australian dollar fell: Gold eased, oil rose: Metals are ripping.

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.