Macro Afternoon

See the latest Australian dollar analysis here:

Macro Afternoon

Japanese stocks are weighing on Asian risk taking as selling exhaustion is seeing Chinese markets both on the mainland and in oppressed Hong Kong surge higher. The USD remains under pressure although a lack of buying in Aussie dollar is seeing the local currency fall short of the 68 cent level.

Chinese stocks have continued their bounceback, with the Shanghai Composite closing nearly 0.9% higher to 2934 points while the Hang Seng Index has again surged higher, this time up nearly 1.5% to close at 27075 points. Price is now back above previous trailing ATR support and the resistance zone at 27000 points in a sign that not all is lost in the once peaceful territory:

Japanese share markets were unable to advance due to a stronger Yen throughout the session as the Nikkei 225 closed nearly 0.5% lower to 23292 points. The USDJPY pair was pulled back today in swift reversal from overnight as negative momentum weighs on the USD, pushing it back below previous ATR support, now almost resistance at the 109 handle:

The ASX200 was able to make some gains however, in line with Chinese stocks, surging nearly 0.7% and this time able to close above the 6800 level. The Aussie dollar fell somewhat, hovering again just below the 68 handle here going into the City open, as it remains unable to join other undollar assets as the USD weakens:

Both S&P and Eurostoxx futures are higher, where we could see some actual gains despite last night lacklustre affair with the S&P500 four hourly chart still showing a continued breakout above overhead resistance at the 3100 points level. While the longer term charts suggest a continuation, momentum is considerably oversold and ripe for a pullback on any whiff of bad news:

The economic calendar is again quiet tonight with no major releases.

Latest posts by Chris Becker (see all)


    • I think they will sign some kind of a deal but is it going to do change anything is another matter. For US to grant Huawei 90 days license extension it would mean they are close to agreeing on something. Will be good enough to knock gold price down $20-$30.
      That made me decide to sell few more gold stocks in the arvo.. will see if I called it right.

      • reusachtigeMEMBER

        I hope so. Huawei make the best phones by far. It attests to the Chinamens superior system of profit maximizations.

  1. Kyle Bass interview on China. At the 50 minute mark he talks about how China intentionally undercut the rest of the world on the price of genetic screening, they now hold the DNA sequence of everyone that has used products like, and are developing biological weapons that are targeted specifically at Caucasians.

    • From comments and concur:

      Vincent Lee
      14 hours ago
      Kyle Bass: great financial analyst, lousy fund manager since 2009 and quite frankly a dodgy individual. I’ve been following Bass via twitter for years due to his macro insights, but over the past 6 months he has become Rachel Maddow (but focus is on China). Is it a surprise he has jumped on to the political bandwagon when his fund is in trouble?

      Funny how there is an endless supply of the same sorts ready to believe this sort of stuff … see Rand et al … a la the old Airplane movie … guess it was a bad week to quit sniffing glue ….

    • he could be right but he is hammering China not because Kyle loves democracy but because he us desperate for HK or China to implode and make a billion or at least few hundred millions. Kyle’s been shorting HK and China for while now and it seems he will stop at nothing to make a profit.
      Kyle lost all credibility with me when he tweeted about HK police killing a protester and did not correct his story when evidence was pointed to him that the kid was alive and that the copper acted in self defense. I saw the clips with my own eyes.

    • Ethnic bioweapons while probable will not likely be the precise weapon anyone hoped for given there are no genetically pure races. Even the Han have traces of external DNA, chromosomes and pointers which mean any biological attack on Europeans could also affect a large portion of the Han population.

      There are other good reads out there on the subject

  2. A question for the shut-ins.
    Is there an internet provider that consistently provides speeds near the advertised rate on their cheapest plan?

    • from what I understand iiNet are the best and most trustworthy. this is not direct answer but is the best I can offer. Also very important to use your own router rather than the cheap sh1te all ISP offer. In many cases ISP supplied routers will work fine but if they are required to do bit more heavy lifting they do tend to struggle.

      • The Traveling Wilbur

        Best offer I’ve had on this site. 😊
        So far…

        PS Looks like you’ll need more bandwith than I expected. 😁

    • I prefer TPG by far. iiNet support is dreadful, I’ve just dealt with 2 iiNet service incidents and it was awful. TPG on the other hand ring me to say if there’s something their monitoring has picked up and they are investigating it. I’m responsible for about 10 connections, gradually moving them to TPG. also, dealer code is NBAD if you sign up with TPG 🙂 thanks in advance

    • The “Australian dream” of owning your own home is often automatically associated with a detached house on a block of land. It’s seen as a mark of having “made it”.

      Well when Governments do all they can to pump then higher. I guess you would feel you’ve made it. Climbed out of the primordial soup of renter class and onto the gravy train that is free gains tax free. Problem is it’s of no benefit if you are buying and selling in the same market.

      • The Traveling Wilbur

        Not really a common problem afflicting the patrons around these here parts. Give it 18-months. Or a Chinese backed coup.

      • err that would possibly be the dream of getting dinner ready, cleaning the house, working on stuff, sleeping in etc etc without the kids sitting like zombies in front of a device because they have a nice place to play that isn’t a 3m x 3m space.