Australian dollar defies data crash

The Australian dollar just won’t take the hint today as Australian data deteriorates fast though it has formed something of a bearish descending triangle pattern:

It’s bad news is good news for the ASX as local profits fall away as well and the bourse piles it on:

But for that to make sense bond yields should be falling and they’ve bounced:

What’s happening, I think, is some kind of Fed and PBOC boom mentality has taken hold despite the underlying reality and money is now just chasing money. See iron ore:

And Big Iron:

Plus Big Gas:

Though Big Gold has dumped as the boom is back:

Meanwhile, Big Banks are climbing into their historic bust:

As is Big Realty:

Watch bond yields. They can’t keep rising along with the ASX for bad news is good news to hold.


  1. Gold stocks look attractive. AUD surely will breakdown soon, and the boom illusion in US/China will be short lived.

    Risk off will be back soon enough and Aussie AU miners look a nicely hedged bet. Maybe see if they drop a bit further but looking interesting.