Australian Dollar

A modest start to the week as Chinese equity markets react to the wet lettuce rhetoric from Trump on China’s boot on Hong Kong’s neck as most capital cities in the US burn, which should send housewares/DIY/retail stocks up when Wall Street opens later tonight.

By Chris Becker  Action on markets on Friday night was centered around the US reaction to the Chinese boot on the neck on Hong Kong, with Trump unable to enact anything but hot air in response which calmed stocks on Wall Street somewhat even though the headline Dow fell slightly.

A flat end to the week as the window dressing month end meme takes place across risk assets with most stock markets pulling back here in Asia.

By Chris Becker  The risk edifice continues to push higher, helped along by a reduction in continuing jobless claims in the US even though all the other economic markers show the world’s biggest economy in a deepening recession.

DXY was weak last night as EUR chases the fiscal package: Australian dollar was weak anyway: EMs were mixed: AUD/SPX correlation had an up day but is trending lower: Gold was firm: Oil too: Dirt is crushed: Except the red magic dirt.

A busy day in Asia with lots of economic reports confirming the impact the coronavirus is having on world economies, with the RBA all but ruling out negative interest rates as the local appetite for capital expenditure falls sharply.

The Australian dollar is struggling a little this morning: However, it is interesting to note that the AUD has begun to labour a little versus stocks: One wonders if the falling CNY isn’t a carpet that is slowly being pulled from under its feet.

A mixed mood in Asia despite the orgy of buying still going on in the northern hemisphere with only Japanese stocks advancing on the whiff of more stimulus measures.

Another new low for CNY this afternoon: The AUD has trended in lockstep with CNY since 2015, though the amplitude of the moves are larger.

By Chris Becker  The return of Wall Street sent risk sentiment higher overnight as stock markets continued their push to return back to normal overinflated bubble like status before the COVID-19 pandemic.

DXY is at the bottom of its recent range.

A solid up day here in Asia despite the lack of a lead from US and UK markets with a sea of green across stock markets.

By Chris Becker  Even a closed Wall Street couldn’t keep the bulls away overnight with European markets surging as the prospect of more economies opening up post-COVID19 overshadowed any concerns over the Chinese/US tensions.

Despite the rising tensions with China and the West over Hong Kong and the and a long weekend for US markets, risk is going all in again in Asia, starting the week with a flourish outside of the Middle Kingdom.

By Chris Becker  The Trading Week ended with a whimper on Friday night on Wall Street as tensions over the US/China relationship continued to simmer over as the rhetoric ramped up going into the CCP’s national congress.

It looks like the risk complex has had enough of buying, with all stock markets coming up against resistance and unable to push through, the catalyst today being the Chinese revision in official GDP growth targets, coupled with the clear death of freedom in Hong Kong.

By Chris Becker  Risk sentiment just can’t seem to get above the current elevated levels on stock markets around the world and are snaring back to reality everytime a macro issue raises its head.

Stocks are slipping again, coming up against significant buying resistance as other risk assets like oil are still flying ahead as caution spreads across Asia.