More record highs for bonds, new lows for Australian dollar

See the latest Australian dollar analysis here:

Macro Afternoon

The Australian dollar remains under pressure this morning:

Bonds are at more  record highs at the long end:

And with the lunatic RBA still holding up the short, the curve is being mown down:

XJO is down with its mega-double top still in play:

Big Iron is up and threatening breakout:

Big Gas is down with oil. God knows its political risk is soaring as ravages the east coast:

Big Gold is firm. I remain skeptical:

Big Banks are weak:

Big Realty is getting the treatment. REA has a monster head and shoulders topping pattern that is approaching some critical test:

Good luck with that.

David Llewellyn-Smith
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  1. Wondering….wondering…if ASX shorts are worth releasing yet (I have been hedging them for a little while….)

    Such a tempting head and shoulders pattern…..but I’m so often wrong! 😉

    • Burb
      I’d be careful shiorting ASX
      I cut my longs at 6200 but I’m hoping to see under 6,000 to get back in
      Think 5800/5900 to 6500
      I think we might break topside above 6500 this year
      I agree our economy is stiffed and in debt but it’s not what makes asx move
      It’s not about PE anymore it’s about chasing returns more so and whether market is long or short
      Everything is just wired these days

      • Yes, i’m green at it, and have already gotten slightly burnt (not bad, more of a bruised ego).

        AUD down seems to put a rocket under ASX for some dumb reason, too – but then sometimes it doesn’t, depending on other news; add to that, the AUD is bonkers as well, but just isn’t ugly enough yet vs other options…

        My gut feel is that it will take actual poor reported earning results from the miners and banks to bring down ASX – I’m hedged until then, so everything is zero-sum…

        Really appreciate you thoughts.