Australian Dollar

Stock markets still want to go higher here in Asia, but momentum is waning after being so overbought for so long.

Nobody can stop the music on risk markets with more extensions of overbought rallies across the Atlantic overnight after solid sessions here in Asia yesterday.

DXY was down last night: The Australian dollar is uber-bid once more: Oil was firm and gold weak in the circumstances: Metals are in heaven: Miners to the moon!

Stocks are being bid left right and center across Asia, although Australian traders should’ve had a long weekend since the ASX has had tech issues all day long, unable to trade.

Risk markets returned to a state of hopium on Friday night despite the disaster unfolding in Europe and the US as COVID infections go off the charts.

DXY was down Friday night: The Australian dollar up: Oil fell.

The expected retracement in wildly overbought stocks following the Pfizer vaccine surge continued overnight on both sides of the Atlantic.

  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.