Australian Dollar

Asian stock markets are quite mixed across the region with local shares buoyed by Westpac’s call for two more rate cuts by the beleagured RBA, which sent the Aussie dollar down, while Chinese stocks continued their pullback as the Yuan fix hovered around the 7 handle.

By Chris Becker  Overnight risk markets took a step back as the USD cooled on its strengthening trend against the major undollar assets, with gold moving higher alongside Euro and Yen.

Via Shane Oliver: For a long time, we have been bearish on the Australian dollar, seeing a fall into the high $US0.60s and revising this to around $US0.65 in May.

A solid session for most Asian stock markets although this hasn’t translated into a full risk on response from S&P and Eurostoxx futures as currencies were unable to move in their risk proxy directions as usual, Yen in particular.

By Chris Becker  A big surge on overnight markets with US stocks making new record highs in the wake of fresh optimism surrounding the US/China trade deal and the run up to the Black Friday retail orgy.

Weekend news of a possible resolution or movement of some kind in the US/China trade talks although the IMF is right to say this might be just domestic politics posturing as one country tries to stabilise internal struggle while the other tries to kick out a corrupt autocrat.

By Chris Becker  US all the way on Friday night with Treasuries, the USD Index and Wall Street all advancing in tandem on the back of (spurious) claims by Trump that the US/China trade talks are advancing well – even though he later contradicted that in a Fox news rant.

DXY jumped Friday night: Which dragged the Australian dollar to new closing lows: It was better that EMs: The great Australian dollar short has returned at -48k contracts.

Another generally mixed day in Asian risk taking given the poor performance on Wall Street overnight as the stronger USD weighs on markets.

By Chris Becker  The USD re-asserted itself overnight as stock markets stumbled surrounding the continued lack of good news emanating from US/China trade talks, with Wall Street putting in minor losses.

DXY was up last night as EUR faded: The Australian dollar was universally dumped: Gold was soft: Oil strong: Metals are sick: Miners did better: EM stocks fell: Junk was fine: Bonds sold: But stock also euphoria faded: Westpac has the wrap: Event Wrap US Oct. existing home sales rose +1.9%m/m (vs est. 2.0%m/m) to 5.46mn (est.

Another sea of red across Asian stock markets today following the same wave overnight on Wall Street, despite the Chinese trying to shore up optimism that trade talks won’t stumble and fall into the 2020 calendar year.

By Chris Becker  Overnight markets were rocked again as the possibility of the US/China trade talks extending well into 2020 firmed, as domestic concerns outweighed the bigger picture, stumbling on tariffs again.

No surprise that risk markets are wobbling on any sniff of trouble surrounding the US/China trade deal, as Trump throws the word “tariff” in the air again, which sent US stocks lower overnight, leaking into safe havens here in Asia.

Via CNBC: China is heavily exposed to the U.S.

Via FTAlphaville: Over the years bitcoin has frequently been touted as a “safe haven”.

By Chris Becker  US stocks lost ground as Trump fumbled around comments regarding Chinese tariffs, pushing industrials down while tech stocks had a slight tick upwards, as the USD lost ground against the undollars.

Japanese stocks are weighing on Asian risk taking as selling exhaustion is seeing Chinese markets both on the mainland and in oppressed Hong Kong surge higher.