Macro Afternoon

by Chris Becker

The bottom is falling out of the USD as Hurricane Irma looms off of Florida having wiped out the Caribbean and the dovish tone of the ECB. The Aussie dollar has spiked through 81 cents alongside gold while Yen zooms higher kicking Japanese stocks to the ground as only Chinese stocks remained in the green.

In mainland China the Shanghai Composite has sold off going into the close, currently down 0.3% to 3354 points as its unable all week to get up to resistance at 3400 points.  The Hong Kong based Hang Seng Index however has rallied, up 0.4% but also unable to breach its own resistance level at 28000 points:

Japanese stocks fell immediately on the open and stayed down today, with the Nikkei finishing off 0.6% to 19271 points in response to a very firm Yen. The USDJPY pair has obliterated daily and weekly support here, falling straight through to 107.80 in a very sharp downside move.  This takes it to its lowest level since November last year:

S&P futures are hesistant here as we move into what could be a stormy (sic) session on Wall Street with Irma bearing down on Florida:

The ASX200 had a poor session as expected, falling 0.3% to 5672 points and below the 200 day moving average again in what could be a big indicator of a correction ahead. Banks were the major drag on the bourse, with most of the major four off 1% or more.

The Aussie dollar has gone boom! After breaking out last night above 80 cents against the USD it went nuts when traders went all in short USD, sending the Pacific Peso straight through 81 cents and already half way to my target at 82 cents. This is far too fast, so expect a retracement:

The data calendar ends the week somewhat quietly with Canadian unemployment that only major release overnight, followed by a private oil rig count and some consumer credit figures.

Comments

  1. Following on from yesterday, the pedants at Mozilla said the add on didn’t meet their high standards because reasons, so I have to do the needful if I want it listed. I’ll see if I get a chance to look at it over the weekend.

    • The Traveling Wilbur

      So they had a problem with the user’s ability to enable the viewing of comments for specific MB commenters? Was that the issue?

      PS AUD over 80 and stormin’ Norman. Everything is awesome again! Queue Jerry Harvey.

      • It wasn’t the purpose, it was details of the implementation. Honestly nothing really major just a bit of a pain in the arse.

      • The Traveling Wilbur

        No your not. : )

        And that one for Jerry I did on purpose – for a change. Pun intended (shoppers queue at Hardly Nomal – if you can remember back when their checkouts used to have cues that is).

        And the ones above. To. : )

    • Yeah… I find it sort of sadly and bleakly hilarious that Kim J U launches a missile over Japan … so people rush to the safe haven of …THE YEN.

    • TailorTrashMEMBER

      I feel your pain …..my stash of greenbacks is bleeding ……….a debt ceiling ? …..what a silly idea ? …….”as we sailed into the mystic ” ……..

  2. TailorTrashMEMBER

    Shopping alert ! Shopping alert ! …….channel 9 ( current affair ) is switching from Aldi to Amazon ……….Tracey is assured of employment for a while yet ………

      • TailorTrashMEMBER

        Exactly !………..Tracey will be the only custumer with a salary ……..there seems something not quite right with this model …….just can’t put my finger on it ….??

  3. Shitty code is still better than shitty paint job. Or even perfect paint job. Because that paint job will be posted on instagram. Idiot…

    • Hay at least I did not give my cognitive ability away to “Von” someone or the other, sorta like you describing reality without ever see it.

      • Come back to me when you know what look aside caching, aggressive predictive just in time function loading, highly parallelized vector processing and idempotent resolution matrix means….

      • Idempotent :”denoting an element of a set which is unchanged in value when multiplied or otherwise operated on by itself.”
        But data is all about tethered transport right?

        Sometimes you fucking people… Seriously…

      • mig-i…

        You seem to forget a lot of our past conversations and the scope of my experience and work. Anywho there are several meanings of idempotence, please be more specific wrt application. I did liaison between business and IT on the original piggyback [old term] installation for Clarion Inc American HQ.

        Not to mention an old mate make 200M back in the day on some stuff he wrote and then became a psychiatrist, disillusioned with the direction and quality the field was going. Another mate ran the entire CU of Boulder IT system – functional alcoholic, heaps of funny story’s, like how he broke both legs or the mate that debugged crappy off the shelf systems C-corps would buy, trying to save up front costs. only to spend twice or more as much to get it to work the way they wanted. But at least it was spread out across the books down the road which still made them look good.

        I also mentioned that after doing my battery test for military entrance they wanted me to go into a missile OS, had to get a waver from a full bird to go rangers.

        disheveled… mig-i I’m doing what I am because I enjoy it and make good money kid. The blokes house I’m working on right now is an insurance adjuster for decades, lots of discussion about recent events wrt the storm in Texas and Irma, especially the black and white world between the English way and the Yank. Tooddles mig-i…. sons last school rugby match against BGS this morning…

  4. The Traveling Wilbur

    They are our best, our worst.
    They come from places far.
    Twas a savage tomb that wrought them here,
    And an welcome tone they found.
    Fingers pointed left and right,
    The centre never​ found.
    These people straining, their ambitions dashed as the voices pound and pound.
    Should pause be taken, or thought be had as to the cause for those concerned,
    One wonders if, for all the tif, if even one voice learned.
    Should one blame the organ or grinder,
    The other’s not at fault.
    Who benefits from the largese afforded,
    Who’s better off with those in than out?
    A country’s not ruled by it’s betters,
    And a balloon’s not full ’til it’s burst.

    • Sullen
      Splendid
      An arc completes
      Celestial
      Circumspection
      Drawn beneath
      This winter
      Fell
      And felt
      Betwixt
      Prominent
      Brexiters

  5. NEW ZEALAND: Ardern v English: Leaders’ house price claims face credibility claims | Rob Stock | Stuff.co.nz

    https://i.stuff.co.nz/business/money/96556989/arden-v-english-house-price-claims-face-credibility-claims

    … extract …

    … VERDICT ON ENGLISH

    English’s answer may provide comfort for homeowners enriched as a result of a failure to build enough homes to meet demand, but it offers none to a generation of people left renting from astronomically high house prices.

    Hugh Pavletich, who describes himself as “somewhere to the right of Genghis Khan”, said: “There has already been a generation that’s been severely mistreated because of this housing issue, and what Mr English is saying is another generation should miss out. That is grossly irresponsible.”

    Pavletich said prices must fall, gradually, until they are around three times median income.

    English’s vision of prices staying level, but falling in real terms as wages rise, wouldn’t achieve that.

    Auckland needed only look to Christchurch for its housing solution, Pavletich said. Spread out. Free up land supply. Let people build.

    Pavletich does not believe National has the policies to keep prices flat as incomes rise.

    “We will get to Sydney levels and beyond if we leave the current government in place,” said Pavletich.

    When National came to office under John key the median house in Auckland cost 6.4 times median household income, he said. “It’s now a “stratospheric” ten times.”

    “After nearly a decade of inaction from this government, we have really had enough.” … read more via hyperlink above …

    The NZ homeowners who hate high house prices are revealed in Labour polling | Stuff.co.nz

    http://i.stuff.co.nz/business/money/90244287/The-NZ-homeowners-who-hate-high-house-prices-are-revealed-in-Labour-polling

    Housing through the decades, what is affordable? | Newshub

    http://www.newshub.co.nz/home/money/2016/08/housing-through-the-decades-what-is-affordable.html