Market rout continues – thoughts on current market turmoil

May 15, 2012

FOREX, Global Macro

Morning – I am covering both Morning Links and the MacroBusiness morning this week and I thought that this mornings market wrap might be instructive as to my thoughts on the markets more broadly for those who follow my thoughts.

Here is the link to MacroBusiness morning but in summary this sell off looks to have further to go – the press about China is like the press about the Australian economy lately  and has seemingly taken a paradigm shift from glass half full to glass half empty. this is a double whammy for Australia and the Australian Dollar at a time when it is already under intense pressure.

I’ll write more fully about the Aussie later today but for now it has achieved my original target of of 0.9960/80 and is now looking biased toward 0.9860 and ultimately the November low of 0.9660. Equally 3 year swaps are close to my target of 3.28% sitting at 3.33% and I will update my views on these in coming days as well.

Have a great day

Greg McKenna

http://www.twitter.com/gregorymckenna

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