Macro Afternoon

See the latest Australian dollar analysis here:

Macro Afternoon

Risk markets have reopened across Asia after the weekend gap and its been a mixed session for stock markets with Japanese bourses retreating while the local ASX200 rebounded after its stumbling finish on Friday night. The USD has firmed against the majors except Yen which has strengthened, hence the drop in Japanese domestic stocks.

The Shanghai Composite has closed down a couple of points to 3244, returning from a long weekend while the Hang Seng Index has returned to finally close above 30000 points, up 0.3% to 30035:

US and Eurostoxx futures have retreating slightly going into tonight’s session with the four hourly chart of the S&P 500 showing some hesitation to get past the previous highs above 2900 points:

Japanese stock market have started the week poorly with the Nikkei 225 closing 0.2% lower to 21671 points, unable to build above its recent highs. The USDJPY pair is to blame here with a sudden drop on the Monday morning gap run, falling below the low moving average on the four hourly chart and almost retracing to trailing ATR support at the the 111.30 level. It seem the 112 handle is a bridge too far here for the risk-on pair, which may be signalling a potential end to the bull run on other undollar assets:

No such bad news for local stocks with the ASX200 starting the week with a close above 6200 points, up 0.6% to 6022 points, almost taking back all of the losses on Friday. The Australian dollar is partially the reason as it fell below the 71 handle and rejects the previous weekly high, keeping well below the weekly downtrend line:

The economic calendar starts the week slowly as always post-NFP with a few secondary and tertiary releases including US Factory Orders for February and the German trade balance.

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  1. The Traveling Wilbur


    LNP ridicules LNP policy on electric vehicles.


    The ridicule part being you can’t charge an electric vehicle in 8 minutes part… which the CEO of one of the electric vehicles using Federal money to operate says will get you 200K on one of their chargers and vehicles. Ones already in public use. Just saw that bit on the news, article slightly behind. Long form interview should already be on The Business (iView it) if interested.

    • proofreadersMEMBER

      Nah – happy-clappy ScoMo is channelling the RWNJs in the LNP, possibly aiming to have a policy promoting coal-powered vehicles?
      Whatever it takes?

    • No subsidies please. Raise the import tax on petrol cars to 20%.

      And order every 457 visa worker to give a Nissan Leaf to the ATO.

      • You are starting to self-satirise in a most excellent way Jacob. Kudos – I like it!

    • EU wants to impose sign reading GPS speed limiters on all cars from 2022, hard to believe they will do it as it will absolutely kill German luxury turbos and V8 sales and thus the German automakers in general, might as well buy a Toyota Jap luxovan. Then again going all out communism style control might be more important than holding on to Audi, Merc, BMW, VAG share prices. Who knows… no doubt it will come here too.

      • The EU is a failed experiment. It’s about time countries take back their sovereignty and stop paying these faceless fvckwit bureaucrats to make stupid fvcking rules.

      • There must be thousands of bureaucrats sitting around EU offices with nothing to do, and the devil finds work for idle hands.

  2. Watching Q&A and Josh Frydenberg is on. It is quite easy to see that hardly anyone is the studio audience believes a word that comes out of his mouth.

    • The Traveling Wilbur

      I dare you to name one audience member who believed *anything* he said. Anything.

    • That’s because they are left wing nut jobs. But I agree with them. He’s taking the piss. Whenever he says “the reality is” everything following is a lie. In fact everything he says is a lie. As with all other politicians. You can never be a senior member of a political party without being a complete lying c u n t / p r i c k

    • The Traveling Wilbur

      Including him (which is actually a compliment, as personally he seems like a decent bloke who’s at least aware he’s sold any remaining ethics he had down the River Styx in order to support Abbott, Turdball, Scidmark… Left blank intentionally…)

      Unlike most of the [moderated]

    • It’s hilarious watching him get tongue twisted and putting himself in knots trying to explain how his policies will help out the everyday punter.

    • Life’s too short to waste watching brain melting pseudo-intellectual trash like Q&A. Go straight to the good stuff. MAFS. The comedown isn’t so bad and you’ll respect yourself more in the morning.

    • 2019 and despite nearly 40 years of counter evidence the LNP thinks they can roll out the Laffer curve and trickle down growth in order to win an election.
      That speaks volumes to how hopeless the public debate here is.