Macro Afternoon

See the latest Australian dollar analysis here:

Macro Morning

Asian stock markets advanced outside of China as the PBOC substantially lowered the fix of the Yuan which saw it strengthen a lot in offshore trading, now down to 6.87 making a new monthly low. The three main Asian undollars – Aussie, Kiwi and Yen – all fell back against the USD as result.

Chinese stocks are absorbing the Yuan rise with the Shanghai Composite slipping going into the close, currently down about 0.2% to 3109 points, while the Hang Seng Index has fallen 0.3% to close at 28862 points, still very well supported:

Japanese share markets reopened after a long weekend with the Nikkei 225 advancing due to a much weaker Yen, closing 0.7% higher to 24025  points. The selloff in Yen has seen the USDJPY pair move significantly past its 2019 highs where its now breached the 110 handle:

The ASX200 was the best in the region, nearly closing at 7000 points by lifting some 0.8% to 6962 points. A steady Aussie dollar has helped here where its been unable to exceed the 69 handle since the start of the trading week as this long swing trade reverts to the downside:

Both S&P and Eurostoxx futures are suggesting another blip higher tonight, pushing prices to further record highs:

The economic calendar livens up a little with the latest US CPI print.

Latest posts by Chris Becker (see all)

Comments

    • Good, hopefully word gets out internationally to all the vibrants waiting to come here that half the country is on fire, towns have run out of water and you can’t even breathe in the two biggest cities.

    • “That they’ll have to pay more for their fruit and vegetables because of the bushfires and the drought. Yes, you will.

      “Well, then, the supermarkets also need to let the Australian public know that, because of the bushfires and the drought, you will have to pay more for your milk. Processors are doing the right thing by farmers by actually paying milk cheques when in many cases they’re not getting the product.”

      How about our fossil fuel miners stump up for the cost? Oh, of course, we can’t take their profits away. Something something, sovereign risk.

      • Those are some nice low inflation figures you have there RBA. Be a shame for those interest rates to rise. But I’m sure the happy clappers will simply look through it though.

        • SnappedUpSavvyMEMBER

          By the time they are back from Aspen the smoke will have cleared and they’ll definitely be able to look through

    • ‘…are severely impacting the costs of our farmers and now our processors in the supply chain, so the other end of the supply chain needs to stump up.”’

      Of course no mention of the exorbitant land rents.

    • Can confirm – local super Marchés have been out of broccoli for ~1 week now due to heat etc. Saw it in stock today, anaemic supply, malformed and costs $9/kg. Still, can’t beat the nutrition.

    • On a related note has anyone noticed just how quickly the apathetic traffic intersection window washers disappeared and were replaced by bushfire donation collectors over the past few weeks?

      • Naw their good in their own back yard, Oz just has this effect on people from overseas, that Australians abroad had anything to do with it. Seems back in 2002ish the drop bear meme was deployed with great effect.

        • It was ever thus 😉 The high score of deadly creatures & interaction with ‘scary’ wildlife front of mind.

    • wtf…Also, apparently indig have been here for 120,000 years? Keeps on expanding, not unlike the 6 million…

      As for gervais, it surely was just advertising for his new special, but doesn’t mean everything he said isn’t true.

  1. I’ve got a wide group of young friends across the world. Its been pretty noticeable that my young Euro friends care a lot more about the Australia bushfires than my actual Aussie friends. Most posts from Aussies have just been about photos of the smog…

    You’d think that a burnt koala would be a much better poster child for action against climate change than Greta Thunberg, but there’s also been no mass movement linking the events and calling for immediate action. Its almost as if Greta Thunberg was deliberately engineered to be divisive and thus actually delay or prevent any real action…