Macro Afternoon

See the latest Australian dollar analysis here:

Macro Afternoon

Asia is having a mixed to positive day to finish the trading week with concerns over the coronavirus contagion subdued, leading to tight ranges on forex and stock markets. The Yuan sold off again offshore going into the Lunar New Year holiday week as Chinese stock markets were closed today.

Japanese share markets were stable throughout the session as no further safe haven buying in Yen eventuated with the Nikkei 225 closing up 0.2% higher to 23832 points, nowhere near clawing back the previous losses and finishing the week below the key 24000 point resistance level. The USDJPY pair has been relatively tight as well, trading at or on the mid 109.50 level all day but still looking very weak here:

The ASX200 put in a scratch session, finishing the day unchanged at 7090 points. The Australian dollar was similarly unaffected and traded in a very tight range following its previous volatile 24 hours following the unemployment print:

Both S&P and Eurostoxx futures are lifting slightly with the four hourly chart of the S&P500 showing a minor push back to the intraweek high nearer the 3330 point level with this consolidation likely to continue as the market failed to return to the ridiculous uptrend line above:

The economic calendar finishes the week with a slew of preliminary readings for service and manfuacturing PMIs across Europe and the US plus a big round table at the WEF that is worthwhile to listen to. Have a good weekend and stay safe!

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Comments

    • Fcken cvnt Straya. Any time a sheltered and overpriced industry like hotels gets an ounce of competition, do they improve their product and try to compete? No they just change the rules to protect their cosy business. Fcken.

      • To be fair though, AirBnB has become a cancer for people looking for rentals. Just look at Hobart and how people can’t find rentals because they are all turned into short stay properties with fvck all regard for locals, neighbours or anyone as long as the rentier lines their own pockets.

        • Yes. True. I must admit I’m conflicted on this point. I get the rental arguments but I also reckon if someone owns a property they should be allowed to rent it to whoever they like within the law (and the law should be chiefly aimed at protecting the tenant, short or long term – not the hotel industry!) I also like Airbnbs as a consumer because they suit my needs far, far better than hotels.

          Maybe the sensible solution is to allow Airbnb (properly regulated) but also ummmm CRUSH HOUSE PRICES so people who need somewhere to live long term can actually afford to buy one. Hahahaha how naive. as if, ok, now back to reality…

          • Well yes, exactly, that’s the problem. It is partly a social good, but we have a private property regime and largely we don’t regard government as the provider of housing. So we hit conflicts and contradictions. And I don’t think just making the government handle it would work either.

    • Owners of Airbnb’s are not going to like the next few months given lower international traveler numbers.

      • Mining BoganMEMBER

        Good, might get a few homeless off the streets when landlords’ cashflow dries up.

        Negative gearing loudmouth at work today was saying there’s no need to be homeless in this country. To my immense satisfaction it wasn’t me who had to explain just why it happens. Maybe I’m getting through to more than I think.

        • You’ll know for sure you got to them when they sit him down and start explaining to him with the unforgettable: ‘Listen here, ya’ entitled cvnt, …’

          • Mining BoganMEMBER

            Ha! The amazing thing is that apparently he’s been getting away with talking crap for years. He’s beaten down anyone who disagrees by saying the same thing louder and louder until they give up. I let him go when I first started until one day he was telling the young’uns some absolute garbage so I stepped in. He just repeated his garbage louder. I threw in some numbers. He tries the old tactic of questioning if I could be confident in those numbers. I got the phone out and showed him. He sulked for quite a while over that one and now never repeats louder more than once when I say yeah, nah.

            He don’t like it but he won’t take me on anymore face to face so he tries banging on down the other end of the work floor. Hearing others today getting stuck in makes me think I may have finally broken his repeat louder powers.

        • We told the agent we are moving out in a month. Funny enough she said she was happy for us and that we have put up with a lot living where we have. Funny how that honesty was never apparent in the middle of disputes. The rental market in this country is atrocious. I’m just glad I don’t deal with it anymore. No doubt there is good landlords but mine isn’t 1 of them. I’m frankly shocked more people are not homeless given the state of things.

          • Fertilizer on the lawn spelling CVNT!, seed with weeds in same word of wisdom. Let it grow, let it flow!

          • I had already scribbled rude words into his driveway using the pressure washer, took a while for it to fade away 🙂

  1. TailorTrashMEMBER

    KaufLand pulls out of straya ….well well ……KaufLand doesn’t seem to have any stores in China , India or Nepal …..smart Volk are those Germans ……

  2. Coronavirus Live Updates: China’s Travel Limits Now Cover 35 Million People … New York Times

    https://www.nytimes.com/2020/01/24/world/asia/china-coronavirus.html

    Shanghai Disneyland and other tourist sites across the country shut down, at an unknown cost to the economy, as the authorities tried to contain the deadly new virus.

    By The New York Times

    RIGHT NOW
    Beijing’s propaganda organs strike a positive note as online anger over the government’s response persists.

    A deadly outbreak is growing. Here’s what you need to know.

    • China restricts travel for 35 million people as the death toll rises.
    • China reports two deaths outside the epicenter.
    • Residents, some displaying symptoms of the virus, are turned away from overrun hospitals.
    • Anxiety hangs over residents on Lunar New Year’s Eve.
    • Hospitals in Wuhan make urgent appeals for supplies and help.
    • British and American governments tell citizens to avoid the outbreak hot zone.
    • Shanghai Disneyland and other major attractions will shut down.
    .
    .
    China coronavirus: Death toll rises as more cities restrict travel … BBC

    https://www.bbc.com/news/world-asia-china-51230011

  3. … CHINA … CORONAVIRUS …

    Coronavirus Live Updates: China Suspends Tours Abroad as Xi Warns of ‘Grave Situation’ … The New York Times

    https://www.nytimes.com/2020/01/25/world/asia/china-coronavirus.html

    The authorities reported 15 new deaths in Wuhan, the center of the virus outbreak, including a medical professional in his 60s.

    RIGHT NOW

    The State Department has ordered all American workers at the U.S. Consulate in Wuhan to evacuate, as the city of Beijing limited travel.
    Here’s what you need to know:

    • China moves to restrict travel, including tours abroad.
    • Fifteen more deaths are reported, including a medical specialist.
    • Xi Jinping, China’s leader, says the nation will ‘beat the epidemic.’
    • U.S. orders the evacuation of American consulate employees.
    • Hong Kong declares a state of emergency and shuts schools.
    • People without symptoms could be spreading the virus.
    • China is building two hospitals to fight the outbreak. Projected completion time: 10 and 15 days.
    .
    .
    China coronavirus spread is accelerating, Xi Jinping warns … BBC

    https://www.bbc.com/news/world-asia-china-51249208