-The Australian Sunrise, by James L. Cuthbertson
Oh that pesky premium in Aussie appears precariously perched
Will dissidents in China leave it in a lurch?
(Sorry, best I could do on short notice.)
This little whiff of information comes from BBC News, Sydney:
On the main shopping strip in the multicultural suburb of Auburn, 12 miles from the Sydney Opera House, the mood is as gloomy as the dismal start to the southern summer.
This blue-collar district, where modest houses sit alongside freshly-minted apartments, is one of the areas where Australia's very own property crunch is playing out.
Recent figures from the Supreme Court show that in New South Wales, which has Sydney as its capital and is Australia's most populous state, the number of people having their homes repossessed by banks has risen by 22.5% this year.
A report by insurance provider Genworth does not give detailed figures for arrears but states that "no previous survey has seen mortgage stress levels hit 25%, not even during the depths" of the global financial crisis.
Hmmm….Lo and behold, is that a rising US short-term yield differential against the Aussie, the surprised hot money traveler exclaimed?
US – Australia 3-month Yield Spread (black) versus US $ Index (orange):
Careful Mate! It could be timber time for the Aussie…
AUD/USD Weekly versus Chinese stocks:
Friday the 13th. Be careful out there and have a great weekend.