ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
(This is an excerpt from an article I originally published on Seeking Alpha on April 16, 2012. Click here to read the entire piece.) I have been writing more and more bearishly on the Australian dollar this year (for example, see “Reserve Bank Of Australia Seems Biased Toward More Monetary Easing“). After BHP Billiton (BHP) … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on April 3, 2012. Click here to read the entire piece.) In its latest statement on monetary policy, the Reserve Bank of Australia (RBA) dropped more hints that it is likely biased toward further easing of monetary policy and has a preference … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) The Australian dollar has fallen so far, so fast over the past month that I failed to notice a major change in tone from the Reserve Bank of Australia (RBA) on monetary policy until now. … Read more
The Reserve Bank of Australia (RBA) released its minutes from its last board meeting, May 3. I reviewed these minutes curious to understand the bank’s expectations for commodity prices given the on-going sell-off in commodities. The meeting occurred just as commodities started their current sell-off, so these pressures were not salient at the time. However, … Read more
“Commodity prices are off their peaks but those most important for Australia remain at very high levels, and the terms of trade are approaching their peak of two years ago.” – Royal Bank of Australia, “Statement by Glenn Stevens, Governor: Monetary Policy Decision” (July 6, 2010) From Australia’s perspective, the global economy continues to bring … Read more
The Australian dollar has been my single source of greatest pain during this market correction. I have long favored the Australian dollar as a play against the U.S. dollar. Even as the U.S. dollar index has rallied over 10% since hitting 16-month lows in November/December, the Australian dollar remained flat during most of that time … Read more
The Royal Bank of Australia (RBA) surprised markets by leaving rates unchanged at 3.75%. Forecasts pegged the RBA for another 25 basis point increase. The markets reacted with an instant and steep drop in the Australian dollar against all major currencies. For example, the Australian dollar dropped over 1% against the U.S. dollar. (See chart … Read more