Australian dollar, ASX one-two punched

Wednesday, 31 October 2018

The AUD is still far stronger than it should be today as the one-two punches of weak inflation and China PMIs sank it a miserly 30bps. The massive market short is proving stubborn support:

Stocks have eked out gains:

Bonds are bid:

Dalian is down:

With Big Iron:

Big Gas is mixed:

Big Gold is weak:

Big Banks are still squeezing higher despite a shite ANZ result, aided by bonds:

But Big Realty can’t catch a bid:

Stranger things are upon us.

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.