ASX miracle crushed by Australian dollar

Advertisement

The AUD is still off a little after weak Kiwi inflation but its chart is clearly bullish:

That has the XJO’s little miracle revival:

Bonds are selling after an earlier bid that saw parity with US rates return briefly at the short end:

Advertisement

Big Iron is firm:

Big Gas too:

Advertisement

Big Gold is starting to believe. I’ve missed this rally with a little more ahead. I also expect the AUD to weaken as the year deepens so the shiny stuff may still be OK when the USD turns. Beware the end of cycle shock and USD rebound!

Big Sleazy is on the nose:

Advertisement

As is Big Puswad which has formed a very healthy downtrend:

Couldn’t happen to nicer folks!

Advertisement
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.