Data Diary

This time it is different.  No really.  While the equities markets have been rifling lower and credit spreads are wider – absolute yields have actually been falling.  As opposed to the ‘last time’, when mass liquidation of credit leverage pushed yields to extremes, higher grade bonds of all ilks have caught a bid.  You could [...]

The mighty Australian dollar has taken a pasting over the last week.  We had been keeping an eye on the AUDYEN cross as a measure of the carry trade (here and here).  Would be reasonable to assume that the unwind is in full swing now – see Bloomberg (here): In this context, it’s interesting to [...]

Just closing up shop for the week, and quietly reflecting on the liklihood that the RBA would very soon be dropping interest rates in our fair land, when this report on AUDYEN pops up (see here for the FT Alphaville article).  In summary, it says that punters on the carry trade have pushed positions to [...]

Iron cuticles reporting for duty… Leadership in the Australian market’s rally since March 2009 has come from financials and the materials sectors.  It was notable then that the recent high in the All Ordinaries was not matched by the financials. XXJ was rejected off the longer term downtrend from the September 2007 peak while it [...]

Iron Cuticles here with some final thoughts for 2009 (coming to you through the intemperate haze of a summer flu). The Australian equities market is at a crossroads – trading in a ever narrower range and refusing to capitulate (as I’d been expecting right about now). Unfortunately, arguments can be made for both another fling [...]