Australian dollar sags with wages shocker

See the latest Australian dollar analysis here:

Macro Afternoon

The Australian dollar is under pressure again this afternoon after today’s wages shocker:

Bonds are bid a little but not as much as they should be:

XJO is down with S&P futures but the chart still looks very bullish

Dalian us trying but so far failing to rally:

Big Iron is down again:

Big Gas is excited about nothing:

Big Gold still looks ugly:

Big Zombies are in pain:

While Big Realty is rotating again. This time MEA is up, finally:

The great Australian income depression does make for booming profits I’m afraid.

Tim Fuller


  1. but we can still cut teh rates and fix thing. at least one more time. after that QE will fix thing forever.

      • Jumping jack flash

        I can’t see why they would be so against supplementing incomes through a UBI.
        People will use their government provided UBI to grow and repay debt while interest rates and wages remain constant.
        Its not like obtaining debt will suddenly become optional and everyone will be able to use the UBI to buy a house outright after just a few years of saving.

        But, for whatever reason they’d much rather subsidise the banks through QE in exchange for lower interest rates so the debt can grow while incomes remain constant.

        I can’t really see the difference. Both achieve pretty much the same outcome: creating debt capacity and growing the debt so the interest repayment on that global economy-crushing pile of debt that everyone has a share in doesn’t catch up and turn the whole place inside out.

        • Working’s for mugs. Why don’t they just send us all a cheque every month and we can all go on holiday – permanently.

        • In all seriousness, what happened was that Rudd sent everyone cheques in the post, thinking the recipients would do the decent thing and spend them in the economy. However, what really happened was a mix of things: spending + debt repayment. The debt repayment was precisely what they hadn’t banked on because that reduces the amount of credit in the system and they wanted the opposite.

          The amount of credit in the system is directly linked to the overall money supply and this has direct influences on asset prices. It’s not rocket science.

  2. Actually the poo took off at exactly 11am Brisbane time ripping straight up 25 points. It has since come down from that high but is still up from this morning. Someone somewhere thought something was awesome………………

  3. St JacquesMEMBER

    What did they expect to happen with the constant flood of cheap third world labour? There goes the consumer confidence index. How good’s Straya? hahahahaha

    • Yep. How good is the fake left.

      “skilled” immigrants on $10/hour are not helping to fund any infrastructure. Instead, they are overcrowding the infrastructure.

        • The only fire that would fix this country, is a fire that ripped right through Canberra with all the deplorables stuck inside Parliament House.

          • Sounds tempting but those people are a product of the voters. If the pollies burn then an identical crop will spring up to replace them.

            We need instead for the voter mindset to change. That will happen but only after a massive crisis and crash that afterwards sees people prepared to take hard but necessary decisions.

            We ain’t there yet!

          • It kind of sucks to be ahead of the curve sometimes Arrow :). It will take a massive shake up in their belief systems to fix this mess I’m afraid.

  4. St JacquesMEMBER

    Honestly, you must be being sarcastic or ironic. There can be no other rational explanation for your comments.