Macro Afternoon

See the latest Australian dollar analysis here:

Macro Afternoon

Risk taking in Asia is definitely limited to Japanese markets with Chinese bourses selling off and Australian shares unable to put in a new high as RBA Governor Lowe’s speech remaining dovish for the Aussie dollar. Gold is still struggling to get back above the $1800USD level, while Bitcoin is flat lining as well as it remains at the $45K level, as other crypto currencies find no support following the Litecoin shenanigans:

The Shanghai Composite is selling off sharply going into the close, down over 1.2% so far to cross back below the 3700 point level,  while the Hang Seng Index has continued its retracement, down more than 0.5% be at 25692 points. Japanese stocks are the only highlight in the region with the Nikkei 225 finishing 0.6% higher to 30647 points, helped by a much weaker Yen as the USDJPY pair breaks back above the 110 handle:

Australian stocks were able to just put in a positive finish to the session with the ASX200 eventually finishing only 0.15% higher at 7437 points while the Australian dollar failed to keep support in check and has broken down this afternoon following Lowe’s speech, continuing its selloff from Friday night:

Eurostoxx and S&P futures are very flat heading into the London open, with the four hourly chart of the S&P500 showing price unable to recover so far from its deep dive on Friday night when it broke well below the 4500 point level. Oversold momentum is reverting back but price is not yet above the high moving average so the bears are still in control here:

The economic calendar ramps up tonight with UK unemployment and US inflation to dominate the sessions.

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  1. TailorTrashMEMBER

    “Mr Byres pointed to a decline in high loan-to-valuation ratio and interest-only loans as counterbalances to any perception of rising risk

    Although, it must be noted that strongly rising house prices dramatically push down the loan-to-value ratio of existing loans.”

    So pump the “value” of a fibro in Mount Druitt and there is no risk, it just falls away …sweet as

  2. On TV earlier today, was an interesting discussion from Labor on… ” Why cant we have multicultural Australians become MPs? “.

    So the plan is to migrate NSW away until we lose control of the city. Then to shift Migrants into the Parliament so they can make all our Parliamentary decisions. Migrants with more power then Aussies. This is what Australians pay Tax to the Federation for.

    It sounds like the States need to become less dependent on NSW and Canberra. Time for a new Federation?

    Sounds like ASIO has been asleep at the wheel.

  3. Unvaccinated Treated As Sub-Human

    If we’re going to have vaccines maybe get that Sinovac. No COVID in China last time I checked. Or at least ask them for advice in keeping the virus away from 1.2 billion people mostly living on top of each other in densely populated cities.

    Maybe get the turk boiler in NSW to give them a call. Might have to ask Dan for their number though.

  4. Hugh PavletichMEMBER

    China … The fragile housing bubble …

    … Is the enormity of China’s property sector issues adequately understood ? …

    Evergrande Hires Financial Advisers to Assess Capital Structure … Bloomberg VIDEO … Youtube

    China Hires Its Own Evergrande Advisers as Restructuring Looms … Bloomberg

    China’s government is assembling a group of accounting and legal experts to examine the finances of China Evergrande Group, a potential precursor to a restructuring of the world’s most indebted developer. …

    … concluding …

    … Evergrande shares fell as much as 12% in Hong Kong on Tuesday to the lowest since December 2014. The stock has lost about 80% this year. Evergrande’s 8.25% dollar bond due 2022 dropped about 6 cents to 26 cents on Tuesday, according to Bloomberg-compiled prices.

    With more than $300 billion in liabilities, Evergrande has become the biggest test yet of President Xi Jinping’s willingness to let overindebted companies fail as he tries to wring the excesses out of China’s $54 trillion financial system.

    On top of its obligations to domestic investors and overseas bondholders, Evergrande owes about $147 billion in trade and other payables to suppliers and received down payments on yet-to-be-completed properties from more than 1.5 million home buyers as of December.

    What Would A Restructuring Of Evergrande Look Like? … OPINION Anne Stevenson – yang … Forbes

    China Likely Suffered Another Economic Slowdown Last Month … Bloomberg

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