Australian Dollar

By Chris Becker  A mixed night on risk markets with US stocks retracing while the FTSE launched higher helped by a near three year low in Pound Sterling as hard Brexit becomes a reality.

DXY is approaching breakout even as we approach the Fed.

Quite a mixed response to the record high on Wall Street here in Asia with Chinese markets falling on the back of continued protests in Hong Kong, with only the Australian bourse putting a positive – and record high – session.

By Chris Becker  A stronger than expected 2Q GDP print on Friday night gave US stocks a big goosing, with new record highs, as the USD also put in a two month high with Euro at two year lows against King Dollar.

A very mixed end to the trading week here in Asia with mainland Chinese stocks advancing while the rest of the region stumbled following the impact of the stimulus from the ECB overnight.

By Chris Becker  The ECB met last night and adopted a very very clear easing bias with a new stimulus package, but it wasn’t enough for punch drunk risk markets with European stocks falling and pushing US bourses into the red on the lack of confidence.

A sea of green across Asian stock markets this afternoon but not so for the Australian dollar which continues to stumble as Governor Lowe this morning was unable to outline a clear scenario for when rate cuts will stop.

By Chris Becker  The decline in European manufacturing activity and the swearing in of Trump-lite Boris Johnson as UK PM was not enough to upset risk markets with new record stock markets in the US, while iron ore and oil prices fell on supply gluts.

DXY was firm again last night.

The strong overnight lead has translated into gains across Asian stock markets today while the USD advanced against the Kiwi and Aussie, it fell back against Yen as gold finally found some form as well.

By Chris Becker  European markets awaited the outcome of the UK Tory leadership and hence new PM outcome with the Euro tanking on the news that “Trump-lite” Johnson got the job, thus securing months of chaos until the end of October.

DXY roared last night as EUR and GBP tanked.

Stocks are getting a bit of a bid here in Asia as sentiment swings back to positive on more central bank dovishness.

By Chris Becker  With no economic events overnight, risk markets hinged on the unhinged tweets from Trump while the UK tried to de-escalate tensions with Iran over its seized oil tanker.

Not a good start to the week here in Asia with a sea of red on stock markets in response to the weekend seizure of a British oil tanker by Iranian forces, but also the walkback of the Fed easing more than expected at this month’s FOMC meeting.

By Chris Becker  The possible revocation of the Fed put combined with the Iranian seizing of a British tanker saw risk sentiment reverse again on Wall Street following a positive close here in Asia.

By Chris Becker  Here comes the Fed with more punch to revive this boring party!

DXY slumped last night.

Stocks in Asia are again under pressure following the poor lead from Wall Street, but also from a slump in trade figures in Japan, sending Japanese stocks falling as Yen gained against USD.

Via New York fundie Exante: Australia is standing out globally.

By Chris Becker  The US earnings season is putting several headwinds in the way of an ever-rising stock market with US bourses falling overnight in disappointment.