Australian dollar sucked into building downdraft

Wednesday 3 October 2018

The Australian dollar was falling all morning, sucked down by the building approvals downdraft, before a rumour about a tighter Italian budget hit the market to stabilise things:

Bonds are bid:

XJO has managed a modest bounce:

Aided by Big Iron ex-FMG:

And Big Gas:

Big Gold is a dead cat to my mind:

But not as dead as Big Mortgage. It was lifting as yields fell but the Italian news reversed it:

Big Realty still hasn’t worked it out:

Yet the Aussie profits outlook is not getting better:

The profitless economy in a chart…

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.