Australian Dollar

Everything is awesome as the whole of Asia buys buys buys!

By Chris Becker  Last night saw the Federal Reserve take the QE infinity sword out of the sheath, but it was like limp lettuce to risk markets with only a slight fall in USD as bond yields continued to fall to record lows.

Groundhog day yet everyone?

All those long only equities managers calling buy the dip are being minced again today.

By Chris Becker  Not a good time to try to time your way around these markets with Wall Street slumping again out of the blue on Friday night.

DXY took a breather after nine days straight up: The Australian dollar bounced on the crosses: Gold was up: Oil too: And dirt: Not miners: EM stocks did better: Junk was mixed: Bonds were bid again: As stocks hit new closing lows: Central banks have caught up for now.

Finally, some steady gains across the region, following the lead from overnight stock markets.

By Chris Becker  Some calm returned to risk markets overnight, but its all relative, with oil shooting 20% higher on shutdown rumors from an already overly depressed level.

DXY is not finished: The Australian dollar came off its crisis lows but was still smashed over 24 hours: Against EM it was mixed: Gold has further to fall but it is buy the dips now.

Another sea of red across Asian stock markets today as the crash continues, with local stocks leading the way despite a big cut to interest rates locally by the RBA and a near twenty year low for the Australian dollar.

From the RBA just now: The coronavirus is first and foremost a public health issue, but it is also having a very major impact on the economy and the financial system.

Headed to zero today it seems: Very nearly 54s with low at 55.11.

Where it stops nobody knows: Related, the bond bash runs on as foreign funds liquidate and pull the cash: XJO is folding under the pressure: No end to the rout.

By Chris Becker  Insert fear/panic quote here.

DXY is an untouchable rocket ship.

Another day of stupidity on local stocks, with the ASX200 selling off because ScoMo had some choice words for the unwashed hoarders, while other stock markets lifted across the region.

The Australian dollar is still trading below 60 cents: Bonds are bid after the opening yield spike: XJO is off a breezy 4%: As Big Iron sells: Big Oil has been annihilated: Big Gold is hanging in.

By Chris Becker  It’s all about the stimulus with stock markets lifting overnight in the wake of combined fiscal packages from various governments to offset the economic cost of the coronavirus impact.

Via the excellent Damien Boey at Credit Suisse: With the AUD/USD down at 61c, we thought it instructive to see how it lines up with macro fundamentals.

Another volatile day on Asian stock markets, this time to the upside for most outside China, as a modicum of stability returns to risk markets following the epic falls on Wall Street overnight.

Cross-posted from FTAlphaville: Few things are as likely to imbue us with that sense of global financial crisis déjà-vu than a dollar swap line.

By Chris Becker  Panic and fear are ruling markets, with stock markets likely to see restrictions in trading soon if this epic volatility continues.