AUD is down during the day as ANZ shook up interest rate markets:
Aussie bonds are well bid:
XJO is off the canvas:
Big Iron is mixed:
Big Gas dead cat:
Gold off:
Big Bank dead cat:
Big Realty dead cat:
Just wait until the market wakes up to the RBA’s utter stupidity. Bonds to fly!
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Macro Morning
By Chris Becker Here comes the Fed with
Australian dollar blasts higher on uber-dovish Fed
DXY slumped last night. CNY was soft. EUR
Macro Afternoon
Stocks in Asia are again under pressure
Will a current account surplus rip the Australian dollar higher?
Via New York fundie Exante: Australia is
Really do the corrupt lying banks have that much impact from their comments?
Reality The Australian financial markets are really in trouble
Could the nz dollar pass the oz dollar with a imminent housing crash. Would it be better to hold nz dollars to hedge against possible depositor haircuts that might happen if banks such as westpac require a ballot bailout?
better to hold USD
our banks are your banks, so an Australian housing crash with the accompanying carnage for the big 4 and FIRE generally will take a nano-second before it’s also carnage for NZ banks.
I’d get it out of A/NZ altogether
I think it’s even worse in NZ, did they not get rid of their deposit guarantee scheme?
And NZ and the NZD are also heavily reliant on China trade, although slightly differently, so you are also re-exposed to another Aussie risk there.
And, people might want to consider getting out of “ANZ” altogether also.
nz=oz. banks that is
I have trouble with bonds for some reason I don’t understand.
Which bonds are the go?
If you expect rates to rise buy short term bonds and sell long term and vice versa if you expect rates to fall. As yields rise bond prices fall which hits longer dated bonds harder.
If you think the economy will slow/contract for whatever reason (including central bank tightening which will have to be reversed at some future point) driving down inflation/inflation expectations buy long dated bonds.
Thx fella’s.
I have been buying govt bonds on the ASX via ETFs, such as GOVT and RGB – these are the fixed interest types. I have chosen these for now as I think Oz interest rates will go lower (thus increasing the price of the bonds).
I have also been buying VAF, IAF and BOND ETFs.
I will consider floating rate bonds once I think Oz interest rates will increase (these will basically move the opposite way).
Hope that is of some use.
Regards!
More meat on the bone of a different beast. Thanks Burbs 🙂
Where do those numbers for Newcrest come from?
dunno
I assume your online broker charting can produce it. It just using Newcrest with EVN and SBM as comparison charts and using a common base ie about May 2017 and % change in price since that time. So NCM has hardly budged in 18 months while EVN is up like 40%.