The Australian dollar was briefly bashed by weak GDP before catching another bid. Every recent dip has been bought, presumably on some wayward global reflation trade (incorporating a US/China trade truce). Even so, the battler is forming a distinctly bearish descending triangle pattern:
Bonds soared on crapola GDP and also appear posed to break out:
XJO loved it as the world’s least attractive and overpriced bourse powers on:
Dalian is a nothing burger:
But that hasn’t stopped Big Iron:
Big Gas refuses to see the obvious Labor risk:
Big Gold is still in my dog house on a strong DXY:
Property paralysed banks are still rising on the yield trade:
Big Realty is bifurcating with REA tracking the tech rally while others roll:
Frustrating stuff.
David Llewellyn-Smith is chief strategist at the MB Fund and MB Super which is long international equities and local bonds that will benefit from a weakening Australian economy and dollar so he is definitely talking his book.
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