- U.S. stocks post biggest one day rally in six weeks
- Dollar comes back slightly on profit taking
- Oil firms again, gold weaker on the day. NZD outperforms
Bias: Risk on
U.S. stocks posted a strong bounce overnight, as drug company Moderna released “compelling” early data on a vaccine against Covid 19 after a phase one clinical trial. Market supportive comments from Fed’s Powell over the weekend also added to the bid.
The Big Dollar was slightly weaker overnight, pressured by profit taking after recent gains. The Euro managed to outperform on the day amid fresh details of yet another stimulus plan in Europe. The AUD came back slightly ahead of today’s RBA minutes, while the NZD outperformed on risk on flows.
Oil prices continued to rise overnight, putting on a +8% gain, while gold eased slightly on profit taking after recent gains.
Except eh bullish equity bias to continue into Asia today, which should help to support the JPY. Data and events today sees the RBA Monetary Policy Statement, along with Japanese Industrial Production, while tonight sees UK Unemployment the German ZEW Index and US Housing Starts.