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Macro Morning - MacroBusiness

MacroBusiness Access Subscriber Only Content See the latest Australian dollar analysis here: Things are not looking good in risk-taking land with the COVID-19 delta variant causing a lot of concerns that are spilling over into equity markets which fell sharply overnight. Coupled with the snap OPEC supply surge that has seen oil fall over 7%, commodity markets and commodity currencies are selling off while Treasury yields are down to their February lows just below the 1.2% level in a sign that safe haven buying is accelerating. Bitcoin’s deflation continues with the return to the start of year position at $30K as the daily downtrend line (upper black sloping line) still holds on – remember turn this chart upside down and you’d be buying!

Macro Morning - MacroBusiness

MacroBusiness Access Subscriber Only Content at 8:30 am on July 16, 2021 | 4 comments Risk markets continue to swing from hope to fear with the latter ruling again overnight without any obvious catalysts. Both European and US stocks fell back around 1% or so with commodities equally mixed as oil dropped 2% while industrial metals lifted. The USD rebounded after falling back midweek while bond yields also fell back to their weekly lows as Fed Chair Powell re-iterated the Fed’s stance to the Senate overnight. Bitcoin’s deflation continued with a return to the $31K level yesterday that has it on track to get back to the start of year position at $30K or lower as the daily downtrend line (upper black sloping line) still holds:

Macro Morning - MacroBusiness

MacroBusiness Access Subscriber Only Content at 8:31 am on July 14, 2021 | 1 comment Last night saw an unexpected turn in so-called transitory inflation with the US June print soaring higher while German inflation was characteristically on track as expected. The latter saw European stocks trend sideways while the former saw Wall Street fall back from its usual trend of new record highs. Treasury yields pushed higher not helped by weaker auction results while the USD lifted across the board against the majors although gold managed to hold on above the $1800USD per ounce level. Bitcoin continues to deflate with a return to the $32K level overnight as the daily chart shows it ready to decline back to the start of year position as the daily downtrend line (upper black sloping line) still holds:

Macro Morning - MacroBusiness

MacroBusiness Access Subscriber Only Content at 9:00 am on July 13, 2021 | 2 comments Friday night’s rally on Wall Street caused Asian stocks to rebound yesterday and overall risk sentiment rised in response overnight with European stocks lifting the most, yet Wall Street still put in another new record high.  Treasury yields pushed slightly higher but still remain near their yearly lows while currency markets were relatively quiet given the lack of economic releases. Oil prices moderated while gold whipsawed around the $1800USD per ounce level. Bitcoin came out of the weekend gap with a bit of gusto but was unable to hold on to any gains, pushed back below the $33K level and almost back to last week’s lows with the daily downtrend line (upper black sloping line) still holding here:

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