Australian dollar teeters at cliff as ASX tanks

The Australian dollar is sitting right on vital support as markets digest Omicron. So far it has held but a break of support here opens big downside potential:

The ASX200 has gapped 1.2% at the open but is being aided by firm American futures:

Yields are rising as risk diminishes. Markets have this completely backwards. The only thing that could lift Aussie inflation is virus shuttered borders! Reopening equals wages crushed:

Big banks have been caned. I put it to you that there is more going on here than Omicron. It’s a regime change as markets awaken to zero bound profit squeezes:

Big iron is fine, stupidly so given the outlook is still disastrous:

The Omicron panic is already easing, as it should. Markets overreacted Friday.

That said, the lesson is that all markets are super-pumped long and any disturbance to everything being all good will be greeted by a violent puke.

Houses and Holes
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Comments

  1. happy valleyMEMBER

    “Reopening equals wages crushed”

    And Cristal champagne all round for the RBA boffins as their never-to-be-satisfied sustainable target wage increase bites the dust.

    • C'est de la folieMEMBER

      ….and after a few sherberts and a look at the data they will decide to do what with their sole tool?

      They cant cut rates but they will buy bonds and stuff money into the financial system