Just a quick update on our beloved Aussie and markets in Asia generally.
Houses and Holes prescient headline on links this morning that last night was a dead cat bounce is proving correct. As I write my Bloomberg terminal is telling me:
- AUD/USD is sitting at 1.0477, down 0.78%
- Dow and S&P Futures down 0.65%
- ASX 200 down 0.83% at 4589
- Australian 3 year swap rate 5.23%
- US 10 year futures implying yields lower again
The term risk off is overused but that is what it feels like again today. I have a definite bearish bent at the moment as you would have noted from my Solon piece. The AUD on the hourlies is breaking down and I’m looking for 1.0350 and then 1.0205. But if something happens in Greece watch out.
Hourly chart below.
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