ANDIKA BULLETin 14 AUG 2024

Cooler than expected headline and core PPI (dovish for monetary policy hopefuls) trumped the margin-compression (bearish for corporate profitability and therefore US stocks) aspect of the producer prices data overnight exaggerating a weak-USD dollar/BTFD stocks trend that emerged overnight.

But, it was the US dollar index that stood out today, tanking to post-payrolls plunge lows...

... dumped to its lowest in four months, breaking below its 200DMA...

So the AUD now stands at USD$0.6636

Interestingly, as the US dollar tanked, it was a buy-all-the-things day with bonds (prices) up, stocks up, and crypto up; but of particular note was weakness in oil (well, Iran hasn't blown anything to crap overnight), and gold (flat - at record highs - as WW3 appears to be postponed... for now).

Nasdaq was the biggest winner on the day (surging 2.5%), but all the majors were up strong today...

CBA, Australia's largest bank also just reported their FY24 results.

CBA reported at AUD $9.48bn profit, down 6% on last years profit but they did increase the dividend by 10c from $2.40 to $2.50

Arrears in expired fixed rate home loans have jumped noticeably, up from 0.92% to 1.3%, though below the 15-year average of 1.38%

CBA closed yesterday at an overvalued price IMO of $132.52

Happy Wednesday!

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