We detect a bit of worry falling over the Australian market place. Yesterday we saw a fair fall in the ASX on the back of not much at all. China did a bit of tightening on its lending, but then the banks in China came out and said they have been pouring out credit anyway.
China’s total lending in September – including loans from smaller commercial banks – may reach 500 billion yuan, far exceeding a previous estimate of 280 billion yuan, based on the government’s full-year lending target and banks’ normal pace of lending, the paper said.
The AUD is having a bit of trouble getting over the .99c hump versus the USD, and every time there is even the smallest piece of news there is a noticeable drop, which from our perspective shows the carry traders are getting nervous.
Didn’t BIS just predict a boom in Perth ?
The currency war is still heating up and there is forclosuregate bubbling along in the background with those unresolved toxic assets ready to leap out and attack the US banking system at anytime.
The only good news seems to be undirected government spending via Quantitive Easing. And that is the worry; if undirected money creation is the best news of the day how good can things really be?
Maybe we are reading the tea leaves wrong, but the chickens seem very nervous to us.
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