Macro Afternoon

See the latest Australian dollar analysis here:

Macro Afternoon

Asian stock markets have doubled down on their great start to the week with gains across the region, including the return of some Chinese markets. Bitcoin almost touched the magical $50K level but is still trailing high at well above the $49K level as nothing can stop this bubble:

The Shanghai Composite remained closed for the Chinese NY holiday but the Hang Seng Index returned and surged over 1.6% higher, currently at 30650 points while Japanese markets are getting way ahead of themselves with the Nikkei 225 finishing more than 2% higher to close at 30693 points for yet another record high. The USDJPY pair is behind this push with another lift through the 105 handle and almost matching the previous early February highs as momentum gets nicely overbought:

The ASX200 had another great session, lifting over 0.7% to extend its move out of its recent trading range as it pips above the 6900 point level with the Australian dollar reacting positively to the recent RBA minutes with a brief look above the 78 handle as it makes a new weekly high:

Eurostoxx and S&P futures are tracking higher going into the London session, with the four hourly chart of the S&P500 anticipating more upside when Wall Street reopens tonight with the clear breakout above the 3900 point level ready to extend into a possible 4000 point break soon:

The economic calendar ramps up tonight with the European GDP print plus the closely watched German ZEW survey.

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    • Jumping jack flash

      Its worth noting that a lot of “wealth” these days is actually debt, and therefore doesn’t really exist. If you asked the owners of this “wealth” to pony up then they would probably need to sell up to pay, and then wouldn’t be as “wealthy”. On the flip side, the greater fool taking on the larger pile of debt to acquire the “wealth” from the first guy would then also need to pony up next time.

      That actually isn’t a bad idea to force people to swap “wealth” faster to grow debt at the required rate. Much of the problem with the New Economy is that people take on massive debt to buy and hold, and then use their own money like fools to pay down their debt plus interest. This is actually deflationary. They should instead be flipping so someone else takes on larger amounts of debt faster to repay the original debt plus interest plus capital gain, and grow the total debt in the economy quicker.

      Not a bad idea at all.

  1. Arthur Schopenhauer

    Oโ€™Brian has back flipped on remote quarantine, and reckons the Vic Libs could administer ongoing CBD quarantine!? I wonder what was in the brown paper bag? CBD Hotel vouchers?


    Oโ€™Brian is about as good at reading the room as Scomo.

    • SnappedUpSavvyMEMBER

      Itโ€™s paywalled, but again just from the heading, chinas move will be good for Australiaโ€™s miners ๐Ÿ˜๐Ÿ˜๐Ÿ˜ฒ๐Ÿ˜‚๐Ÿ˜‚๐Ÿ˜‚

  2. The Aussies been doing well for me lately. Bit of volatility though lol. Up/Down/Up/Down lol.

    I hate trading the AUDUSD and GBPUSD. So bloody volatile. Its like riding a bull and hoping you dont get thrown off at the wrong time lol. Not that Im complaining.

    I trade like there’s a bunch of Boomers who are about to steal all my money. Which you know, is probably actually true. Im always focused on the risk of my trades. Im always asking, ” What can go wrong? “. I dont care if I dont make any profits as long Im giving them nothing ๐Ÿ™‚

    • The fed broke it. Now, they own it.MEMBER

      Looks like we’re in the end game now. US 10Y 1.26%
      When will markets spit the dummy and when will the FED step in with yield curve control? We know both will happen but when? I think anywhere between 1.5% and 2%. I have sold everything including Gold and now waiting for the yield to hit 1.5%. Will the FED just go straight to YCC in which case Gold will go ballistic or will they wait for a 20% correction which is what happen with the repo crisis?

      • I thought rising interest rates was a form of ycc ? lol. I just dont think things will rise forever. It’ll hit a ceiling at some point.

        Yeah. I just dont think things are as strong as we pretend them to be.

        I do see a heap of instability giving people whiplash. Im wondering how long it’ll be before people just give up. Can you imagine being filled with passion to run a business right now?

  3. What is happening here
    Something is happening
    Journalism hasn’t made clear
    Somebody turn on the bright
    Lights of social media
    Oh what a feeling
    And we’re dancing on his
    Grave, yeah

  4. Just a small town girl
    Working in the Parliamentary offices
    She told the rape and got nowhere
    Just a city boy
    Born and raised to be a c#nt
    He took the white jerk privileges

    • Arthur Schopenhauer

      With this remote Quarantine Station idea, wouldn’t it be great if Victoria had a Public Works Department staffed with knowledgable Architects and Engineers would could be called upon to work with the Health Department to quickly design a suitable facility.

      With no institutional knowledge or organisational capacity to design and build such a facility existing within the Victorian Government, it can be almost guaranteed the Remote Quarantine will be as flawed as hotel quarantine. (There is less capacity within the Federal Government, before you get your hopes up.)

      And the Victorian Government flaps about like a fish out of water.

  5. If I was Tegean George for a day:

    “I’m sorry what? I am at wrong place or something? I thought this was the PM of Australia taking a press conference, not a cubbyhouse kegger”

  6. When
    Look for some
    housing and you need to spend
    All that you earned just so a boomer retires
    In glam!

    Can’t get started, comical sight
    Everytime I started, they pull a new one

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