Australian dollar well bid as markets belted

See the latest Australian dollar analysis here:

Macro Afternoon

The Australian dollar is still well bid in the low .69s this morning:

Even as bond yields crater:

XJO is cruising for bruising at 16.2 x forward earnings, discounting only iron ore and housing booms ahead:

As it chases yield uber alles:

Dalian volatility keeps rising:

Big iron is off:

Big Gas more so:

Big Gold is hanging in there:

The Big Bank spike has flamed out:

But Big Realty is still partly bid:

Go long MEA (sarc)!

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  1. Unloaded my health insurance stocks a few days ago… they got a big boost on the Scomo Miracle but can’t see them holding up much longer on tightening household budgets and the doom loop of youngsters not joining.

    Only a few equities left now – speccies and a few offshore exposed things … I figure they should hold on ok in a several-rate-cut future… unless everything crashes!

  2. The Traveling Wilbur

    Questions, both serious.

    Is there an unwritten rule about running (jogging) street layouts in this country that resemble a circuit in a clockwise direction? E.g. round river areas where a couple of bridges make a really nice there-and-back run (and therefore a loop). Even keeping left while doing so gets in the way of all the other runners going on the paths in the other direction. Apparently.

    And when is it an appropriate time of day to commence day-drinking?

    PS Go bonds you good thing. Well done MB (again).

    • “PS Go bonds you good thing…”
      —Traveling Wilbur
      In the April 2019 IMF Global Financial Stability Statement, the Advanced Economies are now at the highest level of vulnerability(100) for government debt (page 4 and diagram on page 7).
      Good Luck Wilbur

      • Yes. But I figure the Aus govt will pay out its bonds in AUD – printing if necessary – how much the AUD will be worth is another question but you will get the right number of them! So if you live and spend in Australia it should be fine…

      • The Traveling Wilbur

        I look forward to a sub 60c exchange rate and the manners of the RBA when they drop rates to 0.25℅ to get there.

    • Can’t help you with the first question. As to the second, the younger your kids are and the more you have the earlier it is OK to start drinking.

    • On the upside maybe they have discovered a new “can’t lose” investment that ISN’T property! Let’s watch the money shift…

      Ooh yeah baby.

      • On balance of probability buying bank shares now is not a bad play- not fool proof but good risk reward.