AUD, NZD Plummet as Risk-off Trading Continues

If risk-off trading is taking place right now, why is gold so bearish today?

AUD will turn around in not too distant future and that will take the NZD with it. With the move to electric cars there will be a mining boom in Australia, not to forget the sanctions on exports from Russia.

Be aware tht there is also a need for a lot of housing investment in Australia due to the recent rain and flood damage.

And last but not least: the upcoming election which might be a bloodbath for the current government.

Assets across the board have come under pressure lately as global recession concerns seem to be on the rise.

Looking more specifically at gold, the USD's persistent strength on expectations for an increasingly hawkish Fed has played a big role in the precious metal's recent declines, while yesterday's Chinese trade data highlighting the economic damage of lockdowns might have been the reason for losses accelerating.

All trading carries risk, but with gold re-approaching its 200-day MA it'll be interesting to see whether it can find support or if it breaks lower.

The reconstruction housing boom is being called the profitless boom as rising prices are wiping rebuild profits out....

This Headline is smoke screen AUD is up in 2022 All Year!

When I see the word Plummet - I think '29 '87 '02 '08 '15, armageddon, the end of the financial world as we know it. I think climber who can't hang onto the cliff he is climbing, the Aeroplane than goes straight from 30000 feet to crashing into the ground. The person who having no other option jumps from a tall building. I think terminal velocity. etc...

Why do these commentators use this word so freely to mean 'it went down a bit for a little while?'

Don't know about Aussie but here in New Zealand: The builders are making extraordinary profits (some are (? were) raking in 30% profit and sometimes even more on a new build)- they've all build in clauses that price increases of building materials can be charged to the client. Nil risk for the builder and all the risk for the poor buyer. More than one home is half finished as the banks won't increase the loan to cover the extra building material costs due to the income - loan ratio.

But now with prices staying flat (the boom is over - all profits over the past year have been wiped out) some builders are finding it difficult to get a contract for a new home. The building that is still happening are builders finishing their existing sales (backlog).

We still need some non-urgent repairs to our home, 18 months ago could not get anyone interested, and I am waiting for the builders to have a "lean time".