Australian Dollar

By Chris Becker The Christmas stock market rally continued overnight with US and European bourses both putting on meaningful gains following a successful start to the week here in Asia yesterday.

by Chris Becker Here comes the Santa rally with all markets outside China putting on gains in response to growing certainty surrounding the US tax cuts that should pass mid-week.

By Chris Becker  It’s effectively the last week of the trading year, so that means the last Trading Week wrap up for the calendar year.

by Chris Becker Asia has a wet lettuce finish to the week with most stock markets finishing in the red as the USD continued its decline from overnight, except against Euro as the ECB meeting failed to ignite animal spirits.

Enjoy: ———————————————————————– David Llewellyn-Smith is chief strategist at the MB Fund which is currently long local bonds and international equities that offer superior growth and benefit from a falling AUD so he is definitely talking his book.

Via Westpac: We confirm our forecast that the AUD will drift even lower in 2018 ending the year at around USD 0.70.

by Chris Becker The usually volatile 2nd Thursday of the month here in Asia, with Aussie unemployment and the Chinese trifecta of releases shortly after got a bit more exciting today as the PBOC abruptly hiked short term interest rates.

By Chris Becker So the Federal Reserve pulls the trigger, raising rates at its December meeting overnight, signalling three more for 2018.

by Chris Becker The Alabama senatorial election is putting a little spice into a bland market with the USD falling slightly against the majors – Aussie dollar particularly – as the Fed begins its meeting tonight.

Some months ago, FTAlphaville’s Izzy Kaminska wrote the following: Once upon a time, eurodollars were dollar-like liabilities issued by non-US entities outside of the reach of regulations that usually govern dollar-issuing entities.

By Chris Becker Another record high for US stocks, although the NASDAQ retreated ever so slightly, as the USD lifted and Treasuries sold off slightly sending the 10 year yield back up to the “uncle point” of 2.4% before the Fed Meeting starts.

Thar she blows: At least with a tulip you get to plant the bulb again next year and you a get pretty flower.

From Morgan Stanley today: We see the RBA firmly on hold in 2018 as the headwinds from a consumer crunch and evolution of a housing slowdown prevent Australia from joining the global tightening bias to monetary policy.

by Chris Becker A lack of trading volume as risk markets hesitate before the dual ECB/Fed meeting this week saw most Asian stock markets retreat slightly today, with currency markets also relatively stable.

Via Barclays: We see AUD under-performance against G10 currencies.

Via The New Daily: The Bitcoin frenzy currently gripping the world is taking an unexpected toll on the planet – in the form of a carbon footprint almost as big as New Zealand’s.

By Chris Becker Another not so unusual night on Wall Street with European stocks sluggish in anticipation of the ECB meeting later in the week, US stocks put in new record highs as tech and energy stocks lifted everything.

DXY was firm last night: AUD rebounded against DMs for no obvious reason: And EMs: Gold was caned: Brent jumped on a UK pipeline shutdown: Base metals jumped on sagging Chinese credit.

It’s an eternal story of greed and loss: By the middle of the first decade of the twenty-first century, the psychology of the boom was well established.

by Chris Becker A very positive start to the trading week with all Asian share markets up strongly, absorbing the usual weekend volatility well – excepting Bitcoin, of course.