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.
