Australian Dollar

Asian markets are aligning again with overseas risk taking with optimism surrounding the US/China trade deal building as the USD strengthens again vs the undollar assets.

By Chris Becker  It’s all about record highs on stock markets in the wake of the US/China “phase one” trade deal with Wall Street bounding to a new high, dragging risk assets along for the ride.

A mixed start to the trading week here in Asia with only the ASX200 putting on outsized gains, namely due to a weaker Aussie dollar and a solid trifecta of economic prints from China.

By Chris Becker  It was all about the US/China “phase one” trade deal on Friday night markets with a surprising reversal after the usual all-in sentiment moved to one of caution, with scratch results on Wall Street the result.

Everything is awesome as the Tories look set to wipe out any chance of the UK remaining both in the EU and in, well union as risk takers take the cue that the US/China trade deal is done as well, sending the USD down against almost everything but gold.

Who said polling was dead.

DXY up, CNY more: The Australian dollar is the toast of DMs: EMs did a little better: Gold held up: Oil firmed: Metals were mixed: Miners to the moon!

Via Bill Evans at Westpac: At the time of our November Market Outlook the AUD had lifted from USD0.675 to USD 0.698.

A very mixed session across the region today as risk taking diverges as a result of a more accommodative Federal Reserve overnight which sent USD lower against all the major currencies, which affected the ASX200 the most.

By Chris Becker  Last night saw the release of the latest US CPI print which nudged slightly higher, sending stocks higher as well but following that the FOMC decided to keep rates on hold which put stock futures into a little tizzy.

Japanese stocks tread water today as other markets leaped ahead on the news that the Twit-in-Chief may delay the upcoming December 15 tariffs, although currency markets were relatively stable as were gold and Bitcoin.

Via Credit Suisse: The Fed’s liquidity operations have not been sufficient to relax the constraints banks will face in the upcoming year-end turn.

DXY slumped last night: But so did the Australian dollar: Gold firmed: With oil: Copper is trying: Miners firmed: With EM stocks: And junk: Treasury curves flattened: Bunds steepened: Aussie split the difference: Stocks are stuck: Westpac has the wrap: Event Wrap US NFIB small business survey rebounded more strongly than expected to 104.7 (est.

By Chris Becker  Yet another night of second guessing again on overseas markets with stocks putting in scratch sessions while the USD oscillated against many undollar assets with Bitcoin falling, gold rising alongside Euro and Aussie dollar sinking to a new weekly low.

Traders across the region are twiddling their thumbs as stock markets hold steady following a lacklustre night on the other side of the world for risk taking.

Nope.

By Chris Becker  Markets were kept guessing again overnight on the direction or implementation of the December 15 China tariffs with a clawback of Friday nights exuberance on both sides of the Atlantic.

DXY was stable last night: The Australian dollar eased versus DMs: And EMs: Gold is struggling: Oil is firm after the surprise OPEC deal: Metals are weak but copper has bounced: Miners continued on: EM stocks struggled: Junk is stable: All bonds were bid: Stocks faded: Westpac has the wrap: Event Wrap German Oct.

Stocks across the region had a less than mild response to the stonking NFP print on Friday night, with gains only half that of their northern hemisphere brothers.

By Chris Becker  Friday night saw the big event on the calendar – the latest US unemployment figures via the non-farm payrolls (NFP) – which set the tone for the rest of the month and indeed year for risk taking.