Australian dollar crashes

See the latest Australian dollar analysis here:

Australian dollar pops and drops on Evergrande vs Fed

For no apparent reason beyond the obvious, the AUD just got liquidated nearly 2%:

Aaaaand, Australian dollar uncrashes:

Both fat-finger and harbinger.

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David Llewellyn-Smith is Chief Strategist at the MB Fund which is very conservatively positioned for coronavirus risks including a falling Australian dollar. 

Houses and Holes

Comments

    • GeordieMEMBER

      I think, hands down, we now have a name for the AUD.

      May I present to you, the new Down Under currency “Toilet Paper”. Trade the TP now, before stocks (particularly banks) run out!

    • Just looks like a big sell order in a thin market (related to a stop loss sell order in equities)
      Probably back at 6650 tomorrow
      Think maybe 6700 before lower again
      Let’s see it’s nuts & market is very thin
      You can discount some of these moves today

    • Trigger Finger

      I think once you look at the bottom of that handle – and then the sudden entrance into the market of massive purchases the RBA is well and truly, beyond all denial, engaged fully in backstopping the dollar via a plunge protection team.

      Its absurd just how precise their actions are – always bringing back to a prince point almost exactly on a rounded, even, metric.

      Right now its .6500

      How much have they pumped into the market ?

      • The Windy CityMEMBER

        Makes me angry. Get the fuq out of the market you supposed free marketeers.

    • Trigger Finger

      Russia is trying to collapse the US oil shale built up over the last ten years with dodgey QE money. Its predicated on a break even of $80 – the US invading, blockading, placing sanctions or simply fire walling every oil producing economy in competition with its own was an attempt to maintain this benchmark and extract every last drop of profit before the inevitable switch to electric.

      Russia called that bluff – the Matrix Move as its being called.

      The huge debt levels in the US oil industry will flow through into the US banking sector where the worst possible corporate debt nightmare scenario is about to play out.

      Go long corn. Pop Corn.

  1. No bid will do that……the RBA will wake up soon. That is why we have circuit breakers but in our world one for currencies would be an admission of something.

  2. Wild guess…. Aussie hospitals ramped up testing late last week, and maybe someone knows the results?

  3. Most likely the initial part of the downward move was based on some information or other. Then the algorithms took over and we had another classic flash crash. Cashed in some shorts but missed the bottom by miles. Now trying to work out where to open new shorts, how much will it recover?

    Oh yeah, I’m sure someone is on this, but ASX down 6.7% so far today. That is not a typo

      • darklydrawlMEMBER

        I hear you MB. Although experience has shown that at this part of the cycle hanging around and doing nothing is a better long term plan than having a panic monment and selling out. Time for selling was 3 months ago. If you missed that boat the best advice I have is don’t log onto your broking account for 12 months and then revisit your options.

      • BoomToBustMEMBER

        Time to head to Dan Murphys and stock up on beer (already stocked up on red for the winter), no point being quarantined with no alcohol !!

  4. SnappedUpSavvyMEMBER

    the deeper the solar minimum the more irrational it will get, its all happening, Bcnich’s head must have exploded

  5. OMG!

    The RBA must have cut by tooooo much last week.

    Unproductive, predatory and speculative capital flows are another possibility but let’s not talk about that as that would involve abandoning some deeply cherished myths about open economies and capital flows.

  6. Mining BoganMEMBER

    Has anyone seen Scummo or the Hungarian today? Surely they should be out making soothing noises or something.

    • MountainGuinMEMBER

      They are probably on their way to Hawaii. Corona is a state issue and the RBA is in charge of markets…

      • The virus is in Hawaii too. Maybe they could fall unconscious into a river of lava and become a curiosity in a future paleontological display in a museum run by the descendants of the monitor lizards that were the only species surviving uneaten by starving Hawaiian pet dogs.

    • China PlateMEMBER

      They are having goulash cooking lessons with that cook – name escapes me atm or i just can’t spell it – bankrupt underpayer

    • BoomToBustMEMBER

      rumour has it the 4th largest player in Chicago got liquidated last Friday. Might not be long.

    • you cant open some of those high rise windows. Some of the new building might have flammable cladding though

  7. darklydrawlMEMBER

    I note that the hydrocarbon stocks on the ASX have been slammed. Down 17%-30% for most of them. Ouch. Santos, Woodside, Oilsearch et al….

    • yeah I’m wondering about that. Not sure yet. Part of me thinks this can consolidate like it did after 87. Other times I think this could run a new bull market like after 2000.
      Silver on the other hand has not budged. Wonder if that might be a good bet right now