AUD - Australian Dollar The Australian dollar was the greatest beneficiary of renewed risk appetite overnight, as US equity markets were buoyed by the FOMC’s dovish monetary policy statement. The AUD has round-tripped from 0.6980 to touch 11-month highs of 0.7063 before retreating into this mornings

The June 9-10 FOMC meeting statement provided a very dovish perspective on the economy. It reinforced the severe damage from Covid-19 to both economic activity and the labor market. Key points The statement maintained the perspective that the pandemic will weigh heavily on economic performance in t

While the US two-year yield is currently trading six basis points higher than recently hit record lows, it is still down over 140 basis points on a year-to-date basis.  The sharp losses could be associated with the coronavirus-led economic downturn and Federal Reserve's unprecedented stimulus-respo

USD/JPY stays firmer after Q1 2020 Japan GDP. Fed’s Powell defies the use of negative rates despite flaunting the central bank’s ammunition power. US-China tussle, virus update weigh on the market’s risk-tone, Powell’s cautious optimism pleases the risks off-late. Virus/trade updates will enterta

Stocks are seeking their daily cycle low The S&P formed a swing low The Dow formed a swing low The Nasdaq formed a swing low and closed above the 10 day MA. The Banks have yet to form swing low The Semi's have yet to form swing low Not only did Biotech form a swing low, they cl

Forex For the summer months, three main drivers will dominate the FX macro; One, the divergence and relative success of lockdown 'exit strategies'; Two, sub-zero interest rate policies; Three, how far the combination of US election risk and blame game on coronavirus leads us down the trade war slop

Gold jumps to the highest level since November 2012.  Fed's Powell again rules out negative rates but says more stimulus may be required. Renewed US-China tensions may be drawing bids for the yellow metal.  Gold jumped to a fresh 7.5-year high on Monday even though Federal Reserve's President Je