Aggregated Awareness

From Tyler Durden of Zerohedge via Reuters comes great analysis about the close correlation of the AUD currency pairs with JPY, USD & EUR; and world major indices stock market movements, and what portends for them after this morning's drop in the AUD vs. USD, JPY & EUR.

With the drop against USD this morning currently at 0.6 US cents from 89.4 to 88.8 US cents, after being down as low as 88.3 US cents an hour ago, it will be interesting to see how the ASX S&P 200 and the ASX All Ords reacts in about an hour & a half's time when the markets open in Sydney.

Excerpt: "...As has been long pointed out on Zero Hedge, the AUD carry pair (either with the JPY, USD or EUR) has been the primary driver of market funding over the past 3 months

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In which case, courtesy of the Australian hung parliament, the market may be in for some tumultuous moves when the forex market opens

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Reuters explains why the AUD is expected to drop a cent or more when trading resumes: "Australia's two major parties wooed independent lawmakers on Sunday after an inconclusive election left the nation facing its first hung parliament since 1940 and set financial markets up for a sharp sell-off. The Australian dollar and shares are likely to slide when trading resumes on Monday, analysts said, with the vote count threatening to drag on for days and both the ruling Labour party and opposition seemingly unable to win a majority..."

Source...