Australian Dollar

The FT has the story: Italy’s leading populist parties are within striking distance of forming a government in the eurozone’s third-largest economy after reaching tentative agreement on a common platform — but not on a choice of prime minister.

By Chris Becker  Only a week after an impressive NFP and stock markets continue to roar upward in response, with a mid-week shake out for the USD on the back of a weaker CPI print the only fly in the ointment.

Outside mainland China its been a solid day again here in Asia, with stock markets finishing their best week since February.

By Chris Becker The poor CPI showing in the US saw the USD stumble from its recent rally, but sent stocks to a near two month high.

DXY was hosed last night: An oversold AUD launched: Though couldn’t keep pace with EMs: Gold firmed: Oil flamed out: Base metals were mixed: Big miners to the moon!

Ambrose Evans-Pritchard has the bit between his teeth: Donald Trump could hardly have chosen a more treacherous economic moment to tear up the “decaying and rotten deal” with Iran.

Another solid day for risk markets here in Asia, taking the US lead overnight.

By Chris Becker Oil was the catalyst overnight with industrial stocks lifting alongside as a DOE report indicated much lower inventory levels than expected.

DXY was up again last night but well off the highs.

Another great take from BofAML on the roaring US dollar today: I could not agree more. As EUR tumbles, it’s such a large component of the US Index (DXY) that it automatically rises.

A mixed day here in Asia with stocks exchanging wins for losses across the region in the wake of Trump’s dumping of the Iranian nuclear deal.

Via the excellent Damien Boey at Credit Suisse: No stimulus here Overnight, we published a note about the likely economic impact of the FY19 budget (“Budget FY19 – no stimulus here”, dated 8 May 2018).

By Chris Becker Overnight markets were shaken, but not stirred, by President Trump’s reneging on the Iranian nuclear deal.

The impact of the higher USD continues to weigh on developed markets, but the big stock bourses in Asia continued their rebound as futures for European and US stocks advanced.

By Chris Becker Overnight stock markets responded positively to the great start to the week here in Asia with rallies on both sides of the Atlantic.

The fallout from the US unemployment print on Friday has been quite positive, with all stock markets closing higher here in Asia.

By Chris Becker  The US non-farm payroll/unemployment print came and went on Friday night, setting up the timbre of the next months action on risk markets.

Its another sea of red across Asia as traders nervously await the NFP print later tonight, with the USD rebounding against some currencies in anticipation as the Aussie dollar spiked on Futureboom “forecasts” from the RBA.

Great stuff here from BofAML’s David Woo: The major points: US dollar headwinds gone, especially EM trade.

By Chris Becker Stock markets are still digesting the ever stronger USD rally, but overnight the King of currencies finally weakened with a lower than expected ISM non-manufacturing survey putting to question the robustness of tonights NFP.