• Asia-Pacific equities higher.
  • Pro-risk currencies and commodities up.
  • Anemic volume, position squaring-off also in play.

Greenback is in the backfoot today after clocking the largest one-day gain of two months yesterday. Investors’ rush to safety drove Tuesday gains as market confidence took a beating from the fears surrounding the coronavirus.

Today’s Asia-Pacific trading witnessed risk-on mood making a comeback with equity indices moving higher by more than half-a-per cent on average. The Australian and New Zealand dollars also followed the bullish trend along with commodities like copper and crude oil.

Trump’s refusal to sign the US covid stimulus bill triggered some selling at first, but then the bearish pressure on risk assets soon fizzled, probably because traders are counting on the overwhelming bipartisan support for the bill, with Senate Majority Leader Mitch McConnell signalling his intent to override the President’s veto if any.

Notwithstanding, the current resurgence of risk-on mood might be only an after-effect of traders neutralising their positions ahead of the Christmas holidays and the anaemic trading volumes.

The US equities might inch ahead as S&P 500 futures are trading higher in the late Asia trading. The economic docket is light with only US PCE inflation data and a revised consumer confidence survey from the University of Michigan due today.