Local market played chase the currency all day to finish negative. Lower turnover than last week meant Global investors had even bigger effect. The main game is the declining USD pushing up every other currency except Chinese Yuan. AUDUSD is back at 2 year high over the weekend and expect more rises to come. Even Warren Buffet has extended his weak USD bets…first Gold and now buying Japanese traders to leverage the boosted trade expected into Yen.
US Fed and Whitehouse management style has raised real risk to US economy and the USD is taking the hit for it. Falling USD is going to create inflation but US Fed has already said that they are not going to raise rates anyway. AUDUSD is going up and the economy is slowing while Canberra is playing distraction with blame game and RBA is out of bullets. Geopolitics are getting worse as China announces 1 year wine investigation. The best three performing sectors were Energy, Property and Tech while the worst three were Health Care, Staples and Banks. We just had the negative day despite month-end window-dressing and we are heading into the second worst month on seasonality.
Remain nimble, contrarian and cautiously pragmatic with elevated global macro risks!!!
"Is it a bird? Is it a plane? No it's US fiscal/monetary outlook taking US$ lower and making the Euro great again!!"
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