Australian dollar

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Westpac cuts Australian dollar outlook

Via Westpac today: AU-US yield differentials have continued to grind steadily in the US dollar’s favour in recent weeks, but the 10 year spread widening in early October was eye-catching, from around -32bp to -50bp. This looked to be a key driver of fresh AUD/USD lows since Feb 2016, near 0.70. Growing concern over the impact on China’s economy of

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Australian dollar bounces into China rout

DXY was firm last night. CNY was smashed and EUR fell: Yet AUD rallied versus DMs: And EMs: Gold was hit: Oil too: And base metals: Big miners copped it: So did EM stocks: And junk worldwide: Treasuries were closed: But bunds were bought: As Italy got smashed: And stocks copped it: The wrap from

3

Australian dollar smashed on Fed tantrum

DXY was down last night as EUR lifted. CNY is stable with China closed but CNH is falling: AUD was pulverised against DMs: Mixed against EMs: Gold is still stuck: Oil retreated: Base metals too: Big miners were soft: EM stocks were slain: And junk: As Treasuries sold off again: With bunds: Italy is still

2

NAB: Australian dollar to break post-GFC low

Via the AFR: The Australian dollar could retest its post-2014 cycle lows below US70¢, according to NAB, amid continuing and potential enduring weakness across emerging markets. …”The message is fairly clear; if we are not out of the woods regarding pressure on emerging markets – not just from the likely scaling up of US tariff

0

Italian panic smashes Australian dollar

DXY took off last night as EUR tumbled. CNY fell as well: AUD was punished across DMs: Mixed against EMs: Gold jumped anyway, a signal that were EUR shit to turn real gold will run along with DXY: Oil eased: Base metals were firm: Miners lifted: Em stocks were smashed: Despite a junk bid: Treasuries

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Euro pressures Australian dollar

DXY was firm last night as EUR sinks: The Australian dollar hung on anyway: But EMs were stronger: Gold remains bogged: Oil took off: Base metals were mixed after sagging China PMIs: EM stocks were soft: As EM junk reversed course: The Treasury curve steepened: Bunds were bought: Italy is back and not in a

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Assessing the bull case for the Australian dollar

Via the AFR comes the charge of Aussie dollar bulls: Morgans chief economist Michael Knox expects the dollar to hit US77¢ in the next six months as China ups domestic construction to offset any negative effect of tariffs. …Goldman Sachs Australia and New Zealand chief economist Andrew Boak was the most bullish on the Aussie dollar,

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Australian dollar smashed as euro buckles

DXY rebounded strongly last night. CNY was soft and EUR buckled: AUD was mixed against DMs but smashed against USD: And weak against EMs: Gold was hit: Oil eased: Base metals rolled: And big miners: EM stocks held on: EM junk is offering more hope: Treasuries were mixed: Bunds too: Stocks climbed: Westpac has the

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Capital Economics: Australian dollar headed to 0.65 cents

From Paul Dales today: “It seems as though the RBA won’t seriously consider raising interest rates until the second half of next year at the earliest,” argues Paul Dales, chief Australia economist at Capital Economics. The Fed might well have hiked two or three more times by then, taking US rates near to three per

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Would you swap your deflating house for deflating Bitcoin?

Amusing stuff at the AFR: Despite a sharp fall in bitcoin prices over the past eight months, some bullish investors are still willing to accept the cryptocurrency instead of Australian dollars for the sale of their multimillion-dollar homes. …Now with one bitcoin worth $A8786, a prime piece of real estate in Sydney’s inner-city has hit the

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Fed keeps Australian dollar guessing

DXY was up modestly last night. CNY and EUR down: AUD was unchanged: Gold fell: Oil too: And base metals: Plus miners: EM stocks popped and dropped: Junk is still leading higher: Treasuries were bought: And bunds: Stocks eased: The Fed speaketh: Information received since the Federal Open Market Committee met in August indicates that

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Dirt rotation accelerates

AUD is up through the morning: Bonds are bid: XJO is struggling to go higher: Dalian is up: And the dirt rotation is accelerating with FMG up as well as 58% iron ore which rallied to six month highs: Big Gas is powering: Big Gold meh: The rotating is out of Big Mortgage as Hayne