Australian Dollar

Its a sea of red across Asian share markets as margin calls from the precious metal collapse cause equities to fall over although there was a fair amount of regional data that added to the volatility, including poor Chinese PMI prints and weird moves on Korean markets.

Friday night saw a huge reversal in precious metals fortunes perhaps triggered by the Trump regime’s nomination of Kevin Warsh as the next Fed Governor or the technical overbought status of both gold and silver.

What goes up… DXY has recaptured support, and how.

Nobody wants US dollars.

DXY is not recapturing former support levels. This is TACO (Trump Always Chickens Out) as his “massive armada” closes in on Iran.

Overnight saw Wall Street take a hit on tech stock earnings with Apple the next cab off the rank this evening.

Asian share markets are generally higher as all risk markets look on with hesitation around the seemingly inevitable Iran/US war as both oil and gold prices blowout.

Nothing much to move markets overnight except a looming war in Iran and a pause in the continued structural decline of the USD with both the Fed and Bank of Canada holding interest rates with ECB officials broadcasting a similar sentiment.

DXY rebounded, but the former support is still resistance.

Asian share markets are generally higher but all the activity has been localised here on a very hot CPI print that has all but guaranteed an interest rate rise at the RBA February meeting.

The AUD has de-anchored.

US consumer confidence dropped to decade lows (hard to do your shopping when ICE agents are dragging you out of your car) which was the real catalyst for another huge selloff in USD overnight as the DXY dollar index crashed to a four year low.

The American madman wants a lower currency, and he’s going to convulse until he gets it.

It’s green across Asian share markets as local stocks also joined in the fun despite a much higher Australian dollar as the USD remains under enormous pressure against all major undollars as El Trumpo shoots off about South Korea.

Its all about the structural “off-America” risk trade with the US dollar index now down to a four month low with the Australian dollar making another new high as it surged through the 69 cent level at the start of the trading week.

DXY is fast approaching critical support.

Asian share markets pivoted around inflation prints and other macro news as the chaos from Davos dies down although the TACO trade remains in play.

Wall Street continued the TACO trade overnight led by tech stocks while a series of high inflation data in the US failed to get the USD moving higher with all undollars continuing the structural “off-America” risk trade with the Australian dollar making another new high.

DXY slumped post-Greenland deal.

Asian share markets are generally higher across the region with only Chinese shares taking a breather as markets react to YATT (Yet Another Taco Trade) from Trump as all is forgiven over Greenland at Davos.

In a demented, incoherent hour long speech at Davos, Trump finally revealed his master plan by chickening out yet again on his threats to tariff Europe takeover Greenland.

DXY popped overnight as a triple bunga of the Supreme Court frowning at Trump Fed interference, Greenland calm, and firming Japanese yields let air out of the pressure cooker.

Asian share markets have fallen across the region although Chinese shares remain resilient in the wake of the selloff on Wall Street overnight on a broader “America-off” strategy by all risk markets.

Wall Street came back from its long weekend holiday and sold off immediately in response to the EU revokation of the previous Trump-induced 2025 trade deal as the fallout from the shambles over Greenland hit all risk markets.

Mea culpa!