Australian Dollar

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.

The Australian dollar has reversed its overnight gains as the China stoush explodes: Bonds are bid: XJO is struggling to hold its breakout line: Big Iron is soft.

By Chris Becker  Risk markets re-engaged the buy levers again with the release of the latest FOMC minutes providing a catalyst for further advances, Wall Street lifting nearly 2% while other risk assets like the Australian dollar and oil rose in kind with industrial metals mixed.

Stocks were all over the place today, initially starting out rough with gap downs across the region before most recovered in late trading on optimism that Wall Street will pull the rest of the risk edifice along.

By Chris Becker  A hiccup in risk taking overnight as stock traders read the fineprint attached to the new vaccine news, coupled with steeper than expected declines in a variety of economic reports, namely housing starts, European unemployment and the closely watched German ZEW survey.

The pandemic crisis is over:buy stocks!

By Chris Becker  Here comes the breakout and the second phase in the relief rally as risk markets go ga-ga over a potential vaccine for the coronavirus, while lapping up all the central bank “we will throw the kitchen sink at risk assets” mantra that continues to be rolled out by all and sundry.

DXY was belted last night: The Australian dollar universally flew: Gold was dumped: Oil to the moon: Dirt too: Miners!

A solid start to risk taking here in Asia with the usual Monday morning gaps absorbed with aplomb, especially viz currencies as investors look towards the Powell Put over the weekend, as the US Federal Reserve turns Japanese.

There are two reasons to think that it will.

By Chris Becker  Friday night saw a relatively good end to a hectic week across risk markets with European stocks playing catchup while Wall Street lifted slightly, its optimism about economic life opening contained somewhat by the growing China/US trade dispute, nevermind the pandemic issues.

DXY was up Friday night and still looks very strong: The Australian dollar tumbled against every cross: Despite gold taking off: Oil too: But dirt sagged: Miners were bid: EM stocks are stalled: Junk fell: Bonds were soft: Stocks eked out a gain: Global data is still so bad that it is being ignored.

A somewhat mixed day here in Asia with Chinese shares pulling back on the brouhaha developing between The Middle Kingdom and the Flailing Empire as Trump again ramps up the rhetoric on trade and other measures.