A new post-COVID high for the AUD this morning:
Bonds are stable:
XJO is soft with S&P futures:
Big Iron is up and away:
Big Gas is struggling to believe:
As is Big Gold:
Big Banks are undoing the surge:
A Big Chunt struggles:
Westpac’s fair value model has lifted a little but remains well below 67 cents:
Westpac A$ ‘fair value’ midpoint rises back to the 12 week average of 0.6250, helped by rising iron ore prices and falling measures of risk aversion. This means the A$ is still expensive though above 0.65. #ausbiz pic.twitter.com/p4ouOBAGp1
— Robert Rennie (@Robert__Rennie) May 25, 2020
But that’s the rub as we pour out demand stimulus into superior virus performance. AUD up for now.
It will be interesting to see how stocks take the US disintegration. Europe has done much better with the virus, though not as well as east Asia, so we’ll need to see global growth “decoupling” from the disastrous US if risk is to keep piling it on.
Not impossible. Stocks would believe my farts are supportive of valuations today.
