Australian dollar runs riot as stocks whiplash

See the latest Australian dollar analysis here:

Macro Afternoon

The Australian dollar is running riot on highly volatile data today as the Fed easing gale builds:

Dalian iron ore is holding up manfully on more stimulus hopes as Chinese PMIs weakens:

It’s not enough to hold up Big Iron:

Big Gas is down with oil:

Big Gold has an ugly chart with NCM exhibiting four black crows (and yeh, I just made that up):

Big Banks are on the nose as yields threaten to break higher with risk plus absorb ANZ’s nasty. Curve steepening would normally be bullish for banks but given the lack earnings growth these are now dash for trash stocks only:

Similar for Big Realty as more rate cuts fade:

While bonds sell:

Lot’s of signals for ‘risk on’ as the market parties on the obvious that the Fed won’t hike again. It has made anything remotely positive bidable.

But China is still struggling a lot. There is no stimulus yet in sight (though the Fourth Plenum looms as the great white hope) so its capped fundamentally for now.

That means we have a short term worst case for Aussie stocks as the AUD rises but miners fall and banks cop it as the yield trade unwinds.

David Llewellyn-Smith
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    • Don’t worry, mate. The AUD will be worth so little in the not too distant future that you’ll be able to make summer shorts out of Yellow Beer Coupons. That is if you can manage to get them out of a bank or ATM.

          • Until a six years ago I have always expected it to fall to its real value – probably around US0.40. I always thought some idiot was going o try to do the right thing by the nation. Now I know it is never going to happen. Up or down? Who knows – its all nuts! They’re all (CB’s) going to print and Aus looks like a attractive destination for money. MMT insanity cometh. We’ve still got a few mines we could sell and quite a lot of farms to finance it. Decent businesses not so much. Plenty of Real state!!! Up or down for the A$ simply depends on who pulls the printing lever first. In the words of General McKenna – “Nuts!”

          • “Up or down for the A$ simply depends on who pulls the printing lever first”.
            Thanks Flawse.

    • So my YANK the other day!

      Thinking about buying in again at 1350

      We won’t mention my BBOZ however.