Australian dollar steady as stocks take out 2007 high

See the latest Australian dollar analysis here:

Macro Afternoon

by Chris Becker

The latest retail sales data has temporarily paused the end of week selloff in Australian dollar, as the US unemployment print tonight remains in sight as a continued divergence for USD holders. The Pacific Peso has blipped 20 pips higher from its very tight current trading range:

The weekly trend remains down, with little chance of seeing that 70 handle again, as the AUDNZD proxy also continues its decline to a yearly low:

Meanwhile, the PBOC has firmed onshore Yuan again, now down to 6.9351 with offshore Yuan trading at another handle below that level, part of a big firming in Yuan that’s been going on for months. Not sure if that helps the next round of trade talks with the US:

Talking about manipulated currencies, Bitcoin looks set to finish the week well below the $8000 level after spiking on the intiail response to the US/Iranian crisis:

But when it comes to stocks – yeah baby! It only took 13 years, but the ASX200 is back to its 2007 nominal high and officially ends its secular bear market, with the All Ordinaries hitting 7000 points for the first time:

Come on RBA, you need more goosing come February – and why do you still have January off?


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  1. haha, stocks at record highs, I think it’s the last blow off before it all turns to custard, but I think it will be after US election. I think market thinks same. So 1 last roll of the dice. I noted Google stock has surged again. Not sure what’s driving it. As I mentioned other day I sold quite a bit of NASDAQ stock earlier in the year, Google stock being 1 of them at $1,110 mark. Now at $1,1419 mark as I type. Can’t believe it. I still have about $60k AUD tied up in NASDAQ stock. Thinking of selling this year because I can’t see it staying this way. If values halve that $30k could have gone on the mortgage. Hmmm…

    I’m also banking on Feb rate cut. RBA will do it.

      • I’ll share that once I quit my job in a few weeks. 🙂 But it’s essentially involved with Big Data, Analytics etc..

      • Oh and reason I sold was that I was about to buy a house. I was sure I was gonna get another house and was worried about the wobbles in stock market at the time. If I didn’t buy my house in October I would have stayed long stocks, but this latest rally would have got me concerned and ready to take my winnings off the table. In hindsight I may have sold too early, but I took a big profit in doing so and I can’t be upset I missed this latest rally.

      • He spends a lot of time here, so I’m not sure that his employer is getting the best out of him!
        (Me too…)

    • Still plenty of value srocks can be found in NASDAQ. It may be a bit too late to buy big tobaccos, but Deutsche Bank and Cameco still look of good value. If you have ample risk appetite, you may want to buy Lightbridge that is currently trading below its cash backing per share.

  2. ‘Everyone gets a prize! Former capitalist critics of economic central planning change tune. “Hey, it actually feels pretty good?!’”

  3. “The weekly trend remains down, with little chance of seeing that 70 handle again………”

    You know not the way of the poo ….. i mean force………