Australian Dollar

Risk markets moved on geopolitical and outright political shenigans overnight with Apple pushing the NASDAQ over 1% higher while possible good news over Ukraine – via the US bullying India into submission over its Russian oil purchases – and more speculation about changes at the US Federal Reserve kept the USD significantly weak.

DXY is dropping again.

Green across the board for Asian stocks today despite the poor lead from Wall Street overnight, basically on speculation that the US Federal Reserve is likely to ease in September against dwindling domestic conditions in the US economy.

Another poor US domestic economic print – this time the latest ISM services survey – sent Wall Street lower amid reaction to a rambling interview by Trump overnight espousing new off the cuff tariffs for pharmaceuticals and others.

DXY is holding for now.

Asian stocks are responding positively to the overnight solid moves on Wall Street and on European bourses with the ASX200 actually leading the way in today’s session.

Wall Street rebounded overnight in what looked like a short covering exercise but barely managed to cover the Friday night losses while the USD remains on the ropes as it only moved higher against Swiss Franc as the likelihood of the Fed cutting rates much sooner increases.

The fallout from Friday night’s terrible – or beautiful depending on your alternative facts – US jobs print has seen most Asian share markets come back slightly while Wall Street looks set to lick its wounds on the open tonight.

Goldman with the note.

Well that was an interesting Friday night with the much anticipated non-farm payroll AKA US unemployment print shocking to the downside, with further revisions to prior month prints finally revealing the impact of the Trump regime’s tariff on the domestic economy.

DXY is a flamed-out rocket.

King dollar is back.

Sticky tariff induced inflation in the US overnight sent Wall Street lower as the expectation of rate cuts were diced as the latest PCE came in higher than expected.

DXY is up and away!

  Wall Street failed to make new highs overnight as the Federal Reserve held fire on any interest rate cuts with European shares rallying instead as the USD soared to new heights against the major currency pairs.

Asian share markets are generally weaker across the board as risk markets try to absorb the impact of the latest trade “deal” from the Trump regime while also anticipating some pretty big macro and economic releases in the coming session.

DXY is bottoming again.

  Wall Street failed to make new highs overnight as risk markets await the looming Fed meeting and Friday’s jobs numbers amid absorbing the latest trade “frameworks of deals that likely won’t be respected” as peripheral nations still wait the 20-25% proposed tariff slog by the Trump regime, including Australia.

Asian share markets are generally weaker across the board as risk markets try to absorb the impact of the latest trade “deal” from the Trump regime while also anticipating some pretty big macro and economic releases in the coming session.

So says Deutsche. AUD has risen to be the second-best performer in the G10 on a trade-weighted basis since we turned long in the May Blueprint(Figure1).

  The trade war is over and everything will be awesome according to US officials in the Trump regime as the EU seemingly caved in on their respective trade “deal” aka framework, which has sent the USD higher while leaving European stocks adrift in a sea of trouble.

Asian share markets are generally higher after news that the Trump regime has managed to secure the framework of a “deal” with the EU, even though it looks like resulting in massive tariffs for American importers.

Despite a dreadful durable goods order print on Friday night, Wall Street still pushed to new record highs as earnings are coming in solid as expected, helped by buybacks and the “Big Beautiful Bill” spending.

DXY was up Friday but will be down today as Trump strikes a tariff deal with Europe at 15% tariff.