Australian dollar sinks, ASX rises as yield spreads tank

The AUD is taking some pain today:

As bonds are firmly bid:

While short-end spreads have crashed to below 30bps versus the US:

XJO is up:

Mainly chasing the Big Iron bounce:

Dalian is soft:

Big Oil too:

Big Gold still looks vulnerable:

Big Sleazy is getting a royal commission reaming:

Big Puswad is all over:

And Big Retail is licking its wounds. Except WES and its Coles demerger:

FYI, MB has launched a new Australian dollar forecast index which will be updated regularly to keep you abreast of market outlooks. See it here.

Avagoodweekend.

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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.