Australian dollar rockets on dodgy China data

The AUD is off and running, bursting above 0.72 for the first time in two months:

Bonds are selling too:

XJO does not like it:

Dalian is hit by Brucutu:

So is Big Iron. If this gets going it could be a decent buy:

Big Oil is serene in the face of growing political risk:

Big Gold is mixed. A short term buy here has merit given DXY may well weaken:

Big Banks are running hard on imminent easing. They are massively overvalued by gotta get that yield:

Same for Big Realty:

There’s change afoot. A can see AUD running up to mid-0.75s in the short term. That’s why we rebalanced cash and bonds yesterday.

Comments

  1. yeah buuut…the punters are looong da bonds, what happens if the punters start to think that if this is whats happening when there is trade war what happens when that is sorted…china will turbo charge that and screw everyone….

    • Life wasn’t meant to be easy as an investor.
      Short term views have to be flexible, but you can have set medium or long term views.
      China can’t turbo charge forever.
      Once the everyday investor starting buying bonds, prices had already rallied hard.

  2. MB rule = IF(data goes against our macro thesis and causes AUD to rise, dodgy data, reliable data)