A currency shock is being unleashed upon Australia:
How high it goes is anybody’s guess. I still say low 82-83 cents with DXY falling further yet as EUR powers on. But everything is sure getting overheated.
Dalian is falling:
The ASX is staggering under the load. Big Iron is trying but can’t get far:
Big Gas is wilting despite the oil bounce:
Big Gold is at least turning as the DXY flight turns rout:
Big bubble is struggling:
But Big Liar is running, I guess as the RBA can’t hike:
Not that it was ever going to…
I am off on two weeks break today. So I wish you all the best. I can only urge one final time to take advantage of the Aussie as it flies towards a several standard deviation overvaluation straight into a domestic Australian slowing and Chinese bulk commodity tipping point. Here’s the latest Westpac chart:
It ain’t going to last!
Disclosure: I’m the strategist for the Macrobusiness Fund which is currently overweight international stocks. We also run an international equities fund. Both of these will benefit from a falling Australian dollar so I am definitely talking my own book.
Register your interest in the fund and we’ll be touch.