Australian Dollar

As expected, it hasn’t been a good start to the week for Asian stock markets as the new round in the US trade war with China squashes all evidence of confidence that had been building up previously.

The Aussie dollar is getting pounded this morning: As CNY lets go in a massive acceleration of the trade war: Stocks are being dragged in: And the bond is out of control: Iron ore is off the woodshed: Big miners are getting flushed: Big Gas thinks its immune, stupidly.

By Chris Becker  The end of the northern hemisphere summer break usually spells doom and gloom on risk markets, and that’s where the mood takes us at the moment with Friday nights US unemployment print unable to shake confidence back into the complex.

DXY fell  sharply Friday night.

In yesterday’s LIVE webinar, MB Fund’s Head of Investment, Damien Klassen, Chief Strategist David Llewellyn Smith and Tim Fuller walk through where the crashing Australian dollar is headed using a five drivers valuaton model: Australia and Global Growth Interest rate differentials; Investor sentiment and technicals The relative strength of the US dollar.

Asian stock markets are not liking the new round in the US trade war with China with falls across the region as Yen buyers step in on the safe haven and the Australian dollar is wallopped on the commodity selloff while the Yuan has sold off to a new monthly low.

In todays LIVE webinar (11am AEST, Friday 2nd August), hear from MB Fund’s Head of Investment, Damien Klassen, Chief Strategist David Llewellyn Smith and Tim Fuller walk through where the crashing Australian dollar is headed: Australia and Global Growth Interest rate differentials; Investor sentiment and technicals The relative strength of the US dollar.

By Chris Becker  The tweeting Twit-in-Chief put another spanner in the trader war spat between the US and China overnight with more tariff threats pushing the commodity complex over the edge, sending iron ore, oil and other hard commodities down sharply, taking stocks with them.

Most Asian stock markets are off today in response to the “too-dovish” Fed mood overnight, although Japanese bourses barely managed a scratch session due to a much weaker Yen.

The US dollar index is running riot in Asia after it broke out of its neutral symmetrical triangle on the Fed disappointment: There is room to run on this in terms of market positioning.

By Chris Becker  It was all about the Fed overnight where at their July meeting, a 25 bps “insurance cut” rattled markets instead, with US stocks losing more than 1% and sending the USD higher against everything.

DXY broke out last night and is running.

Trump is putting his foot into the trade war mouth with more rhetoric overnight that has startled markets again with most Asian equities stumbling today.

A much more optimistic mood here in Asia today with almost all stock markets putting on gains, with the ASX200 advancing to a new record high.

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.