The Australian dollar is pushing towards another breakout within a bullish ascending triangle chart:
Bond yields are nailed down:
The ASX also has a bullish ascending triangle but I am much more skeptical about this one, in part because the AUD is so strong:
Big Iron is up:
Big Gas is meh:
Big Gold is exploding out of its brief funk:
While Big Banks are being drowned in a bath of blood again after the WBC canary dropped dead:
Given the levels of extreme fiscal and monetary support at large, the price action in the banks is a very bad portent for the domestic economy. At a certain point, this is surely going hit the AUD as well. But the Lunatic RBA is so far behind the curve again that it will not happen before the damage to domestic demand is made much worse by the currency.
Australia long ago stopped being a commodities economy and so long as the currency prices it as one then domestic demand will suffer.
When the Lunatic RBA figures it out, probably as inflation passes through -5%, the case for miners may increase even more with a falling DXY and falling AUD.
