Australian dollar smacked as China stoush explodes

See the latest Australian dollar analysis here:

Macro Afternoon

The Australian dollar has reversed its overnight gains as the China stoush explodes:

Bonds are bid:

XJO is struggling to hold its breakout line:

Big Iron is soft. If push comes to shove for iron ore blockades then it’s the marginal juniors that are in the gun:

Big Gas is recovering:

Big Gold is firm:

Big Banks are in a classic L-shaped recovery. Anyone that can explain to me how the credit-addled Aussie household will recover without the banks, I’m all ears:

Big Realty seems to know. Or maybe it’s just rising because there’s no more house prices to bother it at all:

Mostly I still think that this China brouhaha is rhetorical, sadly.

David Llewellyn-Smith
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  1. at what point at banks a buy? i think you said recently, NOT YET

    guess the q really is, when is NW super going to be all over them

    • GeordieMEMBER

      You’d want to see the bad debt washing out of the system, i.e. the damage being done in real time to their balance sheets, before you look to buy in my opinion. If we somehow get through this without a financial crisis, would you buy them in a zero-growth, ZIRP world? Probably not.

  2. “Mostly I still think that this China brouhaha is rhetorical, sadly.”

    Meaning that the stoush is not really a stoush? That China will continue to buy our dirt?