ASX candle snuffed by Australian dollar gale

Friday, 31 July 2020

The Lunatic RBA has what it wants, a deflationary atom bomb:

Bonds are well bid but the Lunatic RBA should launch an Operation Twist immediately to crush the long end to take the pressure off the AUD. The overly steep curve is like a red rag to a bull:

ASX is taking it in the team today with broad losses:

Including Big Iron despite strong price action:

Big Gold despite strong price action:

Big Oil has it coming:

And Big Banks look positively ill:

The AUD gale is snuffing out XJO.

Well done Loon!

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.