Futures Leaking As Japan Cuts Economic Assessment And Aussie Home Sales Slump

Tyler Durden's picture

No sooner had Azumi announced his rather unsurprising admission (via Bloomberg) that:

  • *JAPAN CUTS ASSESSMENT OF DOMESTIC ECONOMY
  • *AZUMI SAYS HE SEES RISK OF GOVT FUNDS DRYING UP

then Aussie Home Sales came in much weaker than expected (and their lowest in six months). The repatriation of JPY accelerated - dragging JPY higher and snapping all the other majors lower relative to the USD; and AUD weakened significantly (though already priced for some easing). Of course, as a funding pair for everything still, the AUDJPY carry-unwind is weighing on equity futures (though minimally for now).

AUDJPY vs ES...

 

but all the JPY crosses are under pressure (up is USD strength in chart below):

 

Charts: Bloomberg

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
fonzannoon's picture

The bullshit continues then. Metals sell off, treasuries rally and anything with yield hold's the line. This is like being in a shitty purgatory.

Vampyroteuthis infernalis's picture

The forex markets are so large compared to any other class it is not even funny. When the unwind comes watch all classes crash but the USD and the crappy UST. Not because either are quality, but just simply the fact they are the most attractive horses in the glue factory.

AUD's picture

just simply the fact they are the most attractive horses in the glue factory

Not even that. Just simply the fact that they are the most irrational credit bubble of all. The USD is junk through & through.

old naughty's picture

What's to come for AUDCNY now that China is buying less?

slaughterer's picture

We are acting like a 3 point drop in the ES is a catastrophe.  This will be erased by 8:00am tomorrow. New highs for the year are coming up this week.  Ostrich robots.    

Muppet of the Universe's picture

No bro.  I'm seeing an overnight rise and chop to blood farts tomorrow.  but yea, "falls" these days are so weak it's like, why even buy vix or equities?

& if the market were behaving normally, tomorrow would be a shitstorm to remember.

 

As for metals, yea, Ive been saying snapback for 3 days now.  & omfg, the aud fell a little bit against the yen.  THIS HAS BEEN HAPPENING FOR MONTHS.  & lets NOT FORGET, THE AUSSIES HOUSING BUBBLE IS GOING TO EXPLODE.  WTF do you think that will do to their dollar and how is their central bank going to react?  I've give you a hint, it involves making paper = 0

Ar-Pharazôn's picture

blasphemy!!!!!! HOW DARE YOU????? :P    /sarc ;)

Doublescythe's picture

Quit your whining and just buy Apple.

Dr. Engali's picture

The robots will have that churned higher in no time.

fonzannoon's picture

My 2 year old has not slept in 5 nights. She's scared of robots. Up all night yelling about the robots. I never knew we could have so much in common....

Mr. Fix's picture

It's not the robot, it's who's at the controls.

(pure evil)

Dr. Engali's picture

I remember growing up watching shows like Lost in Space ... I used to think robots were really cool. Nowadays not so much.

malikai's picture

That robot in Lost in Space always freaked me out. I can't explain why. But maybe it had something to do with the general feel of that show, which was creepy in its own.

bnbdnb's picture

You didnt think that paper gold was actually useful did you?

SafelyGraze's picture

agreed.

paper gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head

ClassicCommodity's picture

Actually, if we presume there are aliens out there and that aliens trade with other aliens, then I can see only GOLD as the universal form of money (literally). How else do you do interplantery commerce? If they were to pass by and see us guarding it, they'd probably steal if off of us.

TIMBEEER's picture

Yeah, we used to trade Uranium until we got visit from Earth one shiny day - it was a brown man with big ears, telling us about hope and change. He made us realize that paper is worth more than gold or uranium and we made a very beneficial collateral agreement. We will soon be rich and spoiled - no need to invade Earth anymore!

 

Hope and change, Earthlings!

Seasmoke's picture

is it still winter in Australia .....wait until their spring slump !!!!!

akak's picture

I've never figured out how anyone manages to hold on down there, hanging from the bottom of the world as they do. 
I'd ask one of them myself, but damn if I can understand the gobbledygook facsimile of English in which they communicate between themselves.

ForTheWorld's picture

I was born in Australia, I have lived in Australia most of my life, and I still don't understand what most Australians are saying. However, you can't really expect too much from a nation of bogans that celebrates violence as much as we do. It's not a good Friday or Saturday night out on the town if you haven't "king hit" some guy in the head and killed him (yes, this happens, with disturbing frequency).

akak's picture

It's not just the crazy accent and particularly the tortured vowels in (some) Australian English that confuses me, it is the incessant, even gratuitous, use of slang and abbreviated words that has frustrated the Hell out of me while talking to Australians --- when they know damned well that NOBODY but them is going to understand those words!

It was the same thing for me, in Spanish, while traveling in Chile --- they seem to love to go out of their way to use mangled words and slang, even to an obvious foreigner, which I eventually found insulting, and which led to me actually avoiding having to talk to people aside from minimalistic and absolutely necessary communication (and my "normal" Spanish is pretty good, too.)

chump666's picture

you best lay off the drugs. 

ForTheWorld's picture

Perhaps a little like this?

https://www.youtube.com/watch?v=TOOA2ZhBIQY

Not ridiculsouly heavy on the slang, but there's some terms he uses that I don't even get. This is an example of the typical male walking the streets of suburban Boganville, Australia.

Randall Cabot's picture

I couldn't understand anybody half the time when I was working down south near Augusta, Georgia a while back-and they couldn't understand me half the time either.

akak's picture

I worked for a while with a guy from rural Texas, a good guy but damn if I didn't almost need a translator to communicate with him.  He had about the heaviest Southern/Texan accent of anyone I have ever met.  Sometimes, I actually had to have him write down what he was trying to say, I simply could not understand him.  At least he was nice enough about it, and we laughed about it.  Oddly, he had very little trouble understanding me.

JohnG's picture

It's jest b'cause ya'll Yankeez talk t'dayaum fast. Got't lern to slow dooooown some ayund reeeelax.

Dr Benway's picture

Regarding slang, it is interesting how the national character defines what words are exalted to regular slang use.

 

In Australia, there is 'king hit' (devastating suckerpunch), 'skull beer' (drain it in one go), 'larrikin' (goodnatured thief)

 

According to Michael Lewis, in Germany all slang is feces-related. Not sure where I'm going with this.

Surrealist's picture

Austen Tayshus - Australiana [Full and Uncensored - 1983]

http://www.youtube.com/watch?v=Im6VEJKd1aA

 

ozziindaus's picture

I hear ya man. I'm also an Aussie but have been in the US for just over 10 years. No one believes me here when I tell them you couldn't go out without seeing a major brawl or a bouncer head kicking some drunk guy out onto the street (Chasers, Dome, King St.). Last time some wog bumped me and called me a Yanky cunt. 

Everyone I know really wants to get the fuck out of there. No kidding. 

akak's picture

Never knew about that kind of violence in Australia --- yikes!

There is NOTHING like that here in Alaska, which I have heard some people compare, in some ways, to Australia --- but too many people are armed here for that kind of thing --- anyone trying it would be essentially committing suicide.  Also the reason why home burglaries are almost vanishingly rare up here --- most people, even if they do not carry in public, are armed at home.

ozziindaus's picture

Yep. Ever since they banned guns, crime shot up and the cost of drugs hit the floor. They couldn't have planned a better corruption of society. 

Michael's picture

I worked for 18 months after the House passed Cap & Tax and got it to go down in flames, never going to a vote in the Senate. I had a good amount of help doing it and was successful cause Americans are much smarter that Ausies.

monkeyboy's picture

Well at least we can still go to the cinema without it turning into a massacre....well for the time being anyways.

centerline's picture

Steve Keen will have his day in the sun regarding the Aussie housing bubble.  He has been warning them for years.  Will be funny to play back the tapes of the real estate investors telling him back then he was full of shit.

euphoria's picture

Indeed. I will also like visiting people who have been saying for the last couple of years I should buy a property. While they are stuck in negative equity with theirs. Idiots, the lot of them

ForTheWorld's picture

My parents keep saying "why haven't you bought a property yet?! It's the next thing you've got to do!" (much like the scene in Fight Club). I keep telling them that spending more than $400,000 just for a place to live isn't what I want to do. They look at me as if I've just stepped out of an asylum when I say I'd prefer to wait, buy some land, build a tiny house with reclaimed materials and live a quite life. Actually, most people give me the same look.

Son of Loki's picture

Everyone saw this coming but they bought...and bought...and bought...

 

Home prices look grim for [Melbourne] property owners

 

THE stagnant Victorian economy and a flood of new housing stock will form a road block to property price growth for the next three years.

 

http://www.heraldsun.com.au/business/home-prices-look-grim-for-property-...

 

They must mean three dog years (or 21 human years) when you look at China's slowdown, the cancelled projects and  the massive layoffs by the Australian resource companies.

ForTheWorld's picture

There's still plenty of people denying any sort of housing problems in the comments of this article:

http://www.smh.com.au/business/property/gloom-returns-to-housing-market-...

 

LikeClockwork's picture

This one's on the money:

 

"The party is over. All non mining sectors of the economy are in recession as are the non mining states. People will not commit to more debt as household debt is already 160% of income. The financial whizkids have scared the hell out of the public and every day there is more and more bad news from Europe. The fiscal cliff in the US and slashing of public spending by other countries and Australian and state governments will only add to the pain.

The real unemployment and underemployment rate is 18% and the much lauded investment pipleline in resources is being scaled back as companies put projects on hold. BHP alone has deferred $60B of expansion. The iron ore price is under $100/MT and predicted by the government's own report to drop back to $80/tonne in the short term and $60/tonne over the next 7 years as high quality African supply comes online. The natural gas price has plummeted so far in the US it is cheaper generate electricity using gas than coal and they can produce LNG at half the Asian price putting the massive investment in the North West Shelf in doubt.

Australia will be left high and dry as a high cost shallow economy with ridiculous cost of living. House prices will plummet back to reality and level out at the long term mean growth curve. First they will overcorrect on the downside though as always happens in a major correction and thousands of overleveraged littlelandlords will be left crying in their weeties.

Enjoy!"

Commenter Allan
Location Prahran

 

ForTheWorld's picture

That guy is rather infamous on those comments pages. He's very bearish (with good reason), and people tell him to shut up and that he doesn't know what he's talking about. When it all comes crashing down, he'll say "I told you so" and no one will believe him.

awakening's picture

FWIW I as an Australian second that comment.

monkeyboy's picture

It's certainly taken it's time this Australian housing crash thing. But more and more things are falling into place at an alarming rate, so I guess it's only a matter of time before the government stops friggin bleating on about how great the Australian economy is being the best in the world, blah, blah, blah as it certainly doesn't look so great from what I've been seeing.

I give it 6-12 months before the housing market starts to seriously tank. The top end is fucked(has been for awhile), forget the over-priced middle, the bottom to lower has been somewhat resilient(first home buyers grants will do that!), but house prices are definitely on the slide here in Oz.

Anyone want to buy an apartment I'm selling in Brisbane?

 

 

lemosbrasil's picture

Chevron with 6,5% composition dow jones has lost bullish trend line, Caterpillar is close to lost bullish trend line too, but it has a perfect double top chart with hard bearish divergences at weekly chart.

IBM has touches bearish trendline and down !

VXX has already broke up the long bearish trend line 3 days ago...

so.....the final top to SP500 and Dow Jones was 1,426 !

Rally from 666 in March 2009 until 1,426 to SP500  is over ! over !

see here some charts to this topics : http://pracompraroupravender.blogspot.com.br/2012/08/chevron-com-65-no-dow-jones-perde-sua.html

max2205's picture

Wait, Ben might give the ultimate bull trap

lemosbrasil's picture

hahahah......this time is different ! no way !! no way !! game is over !