Australian dollar loses the plot on Australia

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The Aussie dollar barely budged as consumer confidence, housing finance and the NAB survey rained bad news on the Aussie economy:

Bond yields have actually lifted today despite RBA cuts now being all but certain:

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XJO only managed a modest bounce tracking world markets despite everything exposed to domestic demand being in trouble:

Dalian launched out of the blocks this morning on shite Chinese credit:

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Big Iron lifted, too, despite the iron ore price obviously already having massively overshot anything resembling fair value and likely going fall away from here regardless of Chinese stimulus:

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Big Gas is up as Labor prepares to take it down:

Big Gold copped it:

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Big Banks are loving the crash of their underlying collateral:

Big Realty is marking time:

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The obvious conclusion is that the threatening Australian recession is fully priced already.

Or that markets have lost the plot on Australia.


David Llewellyn-Smith is chief strategist at the MB Fund and MB Super which is long international equities and local bonds that will benefit from a weakening Australian economy and dollar so he is definitely talking his book.

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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.