Australian Dollar

Another relatively solid day across stock markets here in Asia, save for Japan which had a much needed but quite shallow pause as Yen buying continued.

By Chris Becker  Equity markets continue to fully price in a V-shaped recovery and are about to return to their pre-COVID19 highs, as Wall Street rallied overnight to a three month high following the good start to the week here in Asia.

A sea of green, but not quite as deep as expected following the orgy of buying on Wall Street on Friday night after the better than expected monthly US jobs report.

By Chris Becker  The latest US employment figures on Friday night – aka non-farm payrolls – caused an up-swell of algo trading as the nominally positive result saw risk zoom to new monthly highs across the board, which should encourage even more risk taking here in Asia on the open.

Heading into tonight’s US non-farm payroll (monthly unemployment) print, Asian stock markets have put on another strong finish to the week as risk sentiment goes back to its excessive highs following an all too brief pause.

By Chris Becker  Risk markets finally returned to some semblance of sanity overnight, with stock markets pausing and eventually retreating slightly from their orgiastic excess all week.

Stock markets are yet to take a breather after a week of excess with only Chinese markets pulling back ever so slightly.

By Chris Becker  Risk markets continue to transmit the message that the pandemic is completely over, business is back as usual, that there are no macro structural issues at all and earnings are going to be tremendous!

DXY is still falling as EUR blasts off: The Australian dollar finally flamed out but it’s not over: Gold was bashed despite DXY falls.

Stock markets are inflating fast as the lack of any connect with reality and a weaker USD sends them careening back to their overvalued pre-COVID19 valuations.

As the Australian dollar’s unruly melt-up continues let’s revisit what the RBA said yesterday: At its meeting today, the Board decided to maintain the current policy settings, including the targets for the cash rate and the yield on 3-year Australian Government bonds of 25 basis points.

By Chris Becker  You can beat protestors, but you can’t beat exuberant sentiment across risk markets overnight with European stocks surging to new highs while Wall Street finished with a flourish despite traders having to drive their Maseratis through broken glass to get to work.

Stock markets are once again oblivious to real world macro settings as the Dictator-in-Chief sends the USD plummeting against major currencies at a similar rate of decline of the US standing in the world.

By Chris Becker  Stock markets continue to diverge from economic reality with Wall Street lifting higher despite rising civil unrest and growing tensions with China over Hong Kong and other trade disputes.

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.