Australian dollar jumps on Xi Jinping panic


DXY faded last night:

AUD bounced across the board:

Oil and gold are going nowhere:

Ditto dirt:


Big miners stopped falling:

EM popped:

Junk too:


Yields retraced:

Stocks eased:

Price action is all about the Xi Jinping panic:


Anticipation is mounting for more forceful Chinese government efforts to end the nation’s stock rout, with regulators planning to brief President Xi Jinping on the market as soon as Tuesday.

If the emperor wants a rally, he will have a rally.

Not that it changes anything. Chinese households own bugger all stocks.

This is more about prestige and credibility for the market to reverse capital flight.


It will fail, in due course. What ails China cannot be cured by slapping lippy on the pig. It is uninvestable.

And the world has moved on to friendlier shores:

A momentous shift is under way in global markets as investors pull billions of dollars from China’s sputtering economy, two decades after betting on the country as the world’s biggest growth story.


Expect AUD to follow the black line.

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.