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The Morning Star paled slowly, the Cross hung low to the sea
And down the shadowy reaches the tide came swirling free.
The lustrous purple blackness of the soft Australian night
Waned in the grey awakening that heralded the light;
Still in the dying darkness, still in the forest dim
The pearly dew of the dawning clung to each giant limb,
Till the sun came up from ocean, red with the cold sea mist,
And smote on the limestone ridges, and the shining tree-tops kissed;
Then the fiery Scorpion vanished, the magpie’s note was heard,
And the wind in the sheoak wavered and the honeysuckles stirred;
The airy golden vapour rose from the river breast,
The kingfisher came darting out of his crannied nest,
And the bulrushes and reed-beds put off their sallow grey
And burnt with cloudy crimson at the dawning of the day. 

                        The Australian Sunrise, by James L. Cuthbertson

Commentary & Analysis

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…