AUD/USD (Austrailian Dollar priced in US Dollars) just broke below a wedge support level and pierced through the 50 day moving average to the downside. AUD/USD is currently at 0.911147, -1.19%. AUD and other commodity currencies have been rising with the reflation trade since the beginning of the year. The Aussie so far almost retraced the whole 2008 down move. You can also look at the long term $XAD/$GOLD performance dislocation and say the gap must be closed somehow. I'll chart $XAD/$GOLD performance and other commodity currencies later.
Also DJZ9 Dow Jones Industrials December Future is at 10,250, -1.84% and FTSE is at 5,198 -3.10%, testing the 50dma and the uptrend from July '09. Dubai debt fears could be the downside catalyst of the risk trade. Dubai credit default swaps (touched 580bps, +230bps in 2 days -imarketnews) and other CDS in the region are widening, including Greece and Ireland. Another domino effect in the works? Reuters is all over this.
Abu Dhabi Commercial Said Owed $1.9 Billion by Dubai (Bloomberg)
Dollar Hysteria (Trading Trophies)
Dubai debt fears hammer stocks (Reuters)
A black swan in the desert (Reuters)
Abu Dhabi ascendant as debt spoil Dubai's "model" (Reuters)
S&P Puts Four Dubai Banks on Credit Watch (WSJ)
Saudi-owned GIB pulls bond sale on Dubai debt move (Reuters)
US Futures In Free Fall, FTSE Halted For Hours And Dubai CDS Surging Again (ZeroHedge)
Dubai struggles to assuage debt fears (Reuters)
Bahrain CDS up almost 40 bps to 231.5 on Dubai-CMA (Reuters)
Gulf bonds plunge, CDS soar on Dubai; shadow on planned bonds (Reuters)
Greek, Irish 5-yr CDS rises, Greek CDS scales 200 bps -CMA (Reuters)
Dubai Sovereign CDS Surges 130 bps As Dubai World Seeks Debt Standstill (ZeroHedge)
Re: Dubai: A Potential Ceiling for Oil (liftandhit.com)
Time for some Corona Lights, Happy Thanksgiving everyone.
DJZ9 courtesy of OptionsXpress,
FTSE 100 courtesy of MarketWatch,
AUD/USD courtesy of FreeStockCharts.com
