Australian Dollar

Following the bounce on Wall Street overnight, Asian stocks came back to end the trading week with relatively strong sessions.

By Chris Becker  The plunge protection team stepped up to the plate again last night on Wall Street as a stunningly bad weekly jobless claim print and another record high number of new COVID-19 cases in the US  wasn’t real enough for shares to selloff.

Following the rout on Wall Street overnight, Asian stocks took a tumble today, not helped by Chinese stocks taking the day off with both European and S&P futures in the red as traders go defensive before the amateurs start selling off.

By Chris Becker  Exuberance turned to fear overnight, and depending on what side of reality you listen to it was either Biden’s fault for leading in the US presidential polls (which means 2/5ths of SFA) or the growing 2nd wave that’s actually the unfinished 1st wave of the coronavirus.

DXY suddenly rebounded last night: The Australian dollar was weak: Gold held above the breakout line but if this gets moving it won’t: Oil was smashed: Dirt fell: And miners: Plus EM stocks: Junk is hilariously high Bonds were bid: Ass stocks were hit: It’s all pretty straight forward.

Bit of a nothing session here for stocks in Asia today with only mainland Chinese and their satellite Australian bourses rising while the rest of the region puts in scratch sessions.

By Chris Becker  Exuberance is exceeding expectations across the risk complex as a swathe of economic activity data overnight pointing to a turnaround in nearly virus free Europe excited stock markets and other risk assets the world over, with tech stocks leading the orgy of buying.

  A bit of drama to keep us traders awake today as yet another Trump nincompoop blurts out the wrong thing, sending futures to the floor before a hasty “I didn’t really mean that” retraction saw risk markets square up again.

Has Peter Navarro went off-reservation?

By Chris Becker  Risk sentiment is only positive on Wall Street due to a surge in a handful of tech stocks, as market breadth stretches out as ridiculously thin as the overall PE valuations, with the NASDAQ up through 10,000 points overnight while European bourses slipped.

It’s a flat start to the trading week as risk markets continue to absorb a lot of hesitation and concern from weekend stats showing the coronavirus isn’t slowing down as expected, with emerging markets and the failed US response creating a lot of “second wave” risk.

By Chris Becker  Risk sentiment continues to fade with another hopeful session on Wall Street dashed on Friday, selling off into the close as the risk of the “second-wave” (aka giving up on the first wave) surging throughout the US, let alone other emerging countries weighed once more.

DXY was up again Friday night and is signaling a rise in risk: The Australian dollar is starting to fall against all major DMs, more risk-off signal: It’s also falling against EMs: Gold roared back to its break out line: Oil is hanging in there.

Probable chart captions: “There is no second wave.

By Chris Becker  Risk sentiment continues to fade with a mess Wall Street session overnight, as money pressured bonds instead as US Treasury yields fell further.

More hesistation and concern feeding into risk markets today here in Asia, with the shocking unemployment print in Australia absorbed without much fuss.

By Chris Becker  Risk sentiment is fading slightly as geopolitical concerns across the Koreas and India/China border clash with the growing coronavirus outbreaks in China and the Southern/western US states.

A much more measured session across stock markets here in Asia as profit taking was the order of the day – except locally as bidders kept on bidding!

By Chris Becker  There’s a lot to digest from overnight markets including China and India border disputes, rising infection rates and case loads of COVID-19 in the US South, plus a swathe of economic data and Fed Chair Powell’s testimony to Congress.