Australian Dollar

There’s a more positive mood across Asia today due to Wall Street brushing aside any concerns about WW3 overnight, as the USD holds firmer across the board.

By Chris Becker  Risk markets remained cautious overnight in response to the ongoing US/Iranian tensions with European stocks dropping before a late rally on Wall Street saw Treasury yields rise as the mood improved.

There’s a lot to digest for risk markets starting the trading week here in Asia with the return of Japanese traders to their desks adding to the volatility.

By Chris Becker  The positive start to the trading year soured on Friday night on the news of the US airstrike assassination of a top Iranian general, combined with a very disappointing ISM manufacturing print saw US stocks fall.

The risk complex is reeling from higher tensions in the Middle East as a top Iranian general is killed, with oil prices spiking considerably in the wake of the attack.

By Chris Becker  The start of the trading year was much better in the Northern Hemisphere overnight, with Wall Street rallying as tech stocks pushed the risk complex higher, despite a reversal in strength in USD which saw Euro and Pound Sterling fall.

The big move on the return of Asian stock markets today after the New Year was cut the PBOC cutting banks’s reserve requirement ratio by 50 bps, starting next week which in effect releases nearly $1trillion in funding.

by Chris Becker Well the Pacific Peso has started the new year over the 70 handle versus USD, capping off a big rally since the start of December: In the short term, momentum is hugely overcooked, running at twice the normal level that happens during a rally, so expect a retracement soon.

By Chris Becker  The end of the trading year was marked by a lot of profit taking and squaring up as the month end and quarterly end triple witching saw major rebalances in equity portfolios, although Wall Street was largely immune from any downside volatility.

Asian stock markets remain in light volume mode, which always increases the risk of volatility, especially to the downside where selloffs were the order of the day.

By Chris Becker  The Santa Claus rally on risk assets is over with a wide selloff overnight as traders square up their results for the year.

With most markets here in Asia are still in light volume mode, there continues to be some downside volatility in USD as the year draws to a close.

By Chris Becker  Given the thin and volatile trading over the Christmas Period, this morning’s report will take a step back and look at the weekly trend overall.

By Chris Becker  Stocks advanced on both sides of the Atlantic, as thinner volumes and macro concerns are waved away as the Santa Claus rally continued apace.

With most markets here in Asia in light volume mode, there’s been a bit of downside volatility that’s not unexpected going into the Christmas period.

By Chris Becker  Wall Street continued the Santa rally with the fourth straight record high week with confidence surrounding the US/China trade deal builds.

DXY was up strongly Friday night as EUR sank: The Australian dollar jumped anyway versus DMs: And EMs: Surprisingly, net positioning on the CFTC moved more short last week to -46k contracts, though the trend is clearly towards more neutral: Gold held on: Brent fell as the US rig count jumped.

Asian markets had a mixed end to the trading week with no real advances across the region despite the usual record highs on Wall Street.

By Chris Becker  As traders around the globe slowdown for the Christmas break, Wall Street was the only major market to put on meaningful gains, with the absence of news translated into good news.

Asian markets were able to absorb a triple whammy today, with the latest BOJ meeting, the usual numberwang that is Australian unemployment, and the impeachment saga in the US.

By Chris Becker  Wall Street stumbled at the end of the session as all eyes were on the growing impeachment saga instead of the fundamentally divergent bubble that is occuring across risk markets.

Asian markets are putting in scratch sessions across the board as jubilation about the US/China trade deal turns into hesitation instead.