Australian Dollar

Not the Stormy session we were expecting here in Asia with most stock markets rebounding instead of following the very poor lead on Wall Street from Friday night.

By Chris Becker  Its beginning to look a lot like a crash.

The Aussie dollar is falling but some are asking why it’s not faster, from the AFR: Australian dollar shedding its risk proxy tag.

A bath of blood on Asian stock markets today in response to the impact of the US tariffs on Chinese goods.

By Chris Becker Trump has pushed risk markets into correction territory with his new round of Chinese tariffs, with US stocks slumping over 2% across the board in response.

From Bill Evans at Westpac: The US Federal Reserve has raised its growth forecasts for 2018 and 2019 just when it appears the RBA might be reconsidering its growth forecasts to the downside.

Reaction to the overnight rise in rates by the Federal Reserve has been mixed here in Asia with Chinese bourses slipping in the wake of the PBOC lifting interest rates too, while Japanese traders returned from a mid week holiday in a positive mood.

By Chris Becker US stocks didn’t like the tightening attitude at the “new” Fed, with an expected rate rise but not hawkish enough attitude slamming the US dollar and wavering resolve around the punch bowl drunk stock market.

A case of pre-positioning before the first Jerome Powell led FOMC Meeting later tonight with most currencies mean reverting, Japanese stocks closed for a holiday not giving the usual risk lead here in Asia to go on.

The Aussie dollar has tacked on a few points during the day: Bonds are off: XJO is modestly up: Dalian is fading as the day goes on: Big Iron is dead catting it anyway: Big Gas is tracking oil.

Via the excellent Damien Boey at Credit Suisse: The trade war distraction and USD liquidity Trade war … what is it good for?

By Chris Becker Stocks were able to recover somewhat last night after the Facebook inspired falls in tech stocks previously bought industrials down to start the week on a sour mood.

DXY took off last night: The Australian dollar took it for the team against DMs: And EMs: Gold may be breaking down: Oil took off as the Sauds and Trump plot against Iran.

The rout on American stocks lead by Facebook last night translated into a similar, if somewhat subdued selloff here in Asia, with Chinese stocks coming through unscathed.

Nice video below from Westpac’s Bill Evans summarising his recent Asian tour: I agree with pretty much all of it except I’m more bearish, more quickly on the AUD.

By Chris Becker Stocks fell sharply overnight as the data exploitation Facebook scandal widened, the social media site losing over 7% dragging other tech stocks down as European authorities also circle around heavyweights Twitter and Alphabet.

Via Morgan Stanley: Bitcoin price weakness has similarities to the Nasdaq in 2000, just occurring at 15x the speed. Bear markets see rising trading volumes and recently USD tether, a cryptocurrency token, has taken increasing trading share. Companies are raising record amounts issuing new coins (ICOs).

Quite a mixed start to the week here in Asia with stock markets changing losses for gains throughout the day in reaction to weekend news, both political and macro related.

By Chris Becker  Risk markets are at a critical point here with the turmoil in the White House looming over the end of the latest business and earnings cycle, as a multitude of bubbles and overcooked asset markets are causing huge hesitation for investors.

The Australian dollar was battered to 2018 closing lows Friday night: It still has room to fall before violating the uptrend in the mid-75 cent range, though I think it will break it this year.

Another mixed session to end the week here in Asia with most stock markets putting in scratch sessions or minor losses as markets continued to contemplate the changes in personnel at the White House amid growing concerns the Federal Reserve will raise rates again next week.

By Chris Becker Yet another mixed night on Wall Street as stocks pushed between concern and confidence as they weigh up the direction of the Fed in next week’s meeting.

A mixed day here in Asia with most stock markets putting in scratch sessions following the poor lead overnight from Wall Street.