Australian dollar rips as Australian economy tears

There’s no stoppong the global reflation rally for the Auastralian dollar as it completely ignores recessionary local data and roars higher. No doubt traders are looking at that chart and runnig on the double bottom:

XJO is lagging global markets as a result:

Bonds are still bidish:

But Big Iron is ripping. I can’t find any reason for it other than general happines. The truth is, unless China stimulates more, its prospects are getting darker. An FMG breakout would be something at this juncture!

Big Gas is solid:

Big Gold is off the canvas. It should be ripping if the global reflation is to take hold with a falling USD:

Big Banks are getting hosed as WBC proves their zombie future:

Big Realty is struggling too as the reality of a real estate bubble with no economic follow through sinks in. MEA is the exception as the Chinese move in:

The Australian dollar rips as the Australian economy tears, even without pricing futher likely falls in bulk commodities.

There’s nothing rational here!

Comments

  1. “.. The Australian dollar rips as the Australian economy tears, even without pricing futher likely falls in bulk commodities. There’s nothing rational here!..”

    Nothing rational?

    That is an understatement.

    We are surrounded by endless lessons and empirical evidence that international capital flows are being manipulated on a massive scale by economies vastly larger than ours and YET the Aussie “ In a coma since Econ circa 1985” commentariat insist that deregulated capital flows are mother nature’s blessing to the world.

    Apologies Wilbury. I know you are taking notes.

  2. Paul Keating and John Howard between them have managed to completely fcuk this once great country. If only it was legal to drag men who’ve harmed you out into the streets and thrash them with bullwhips.

    • Staggering ignorance by Ms Lagarde. Mind you she is a politician before anything else.

      She is very deserving of being dragged through the streets when this all goes t!ts up

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