Macro Extremes (week ending July 31, 2026)

A weekly Macro, Cross Asset review of prices trading at extremes which may generate future investment ideas and opportunities.

The following assets (on a weekly timeframe) either registered an Overbought or Oversold reading and/or have traded more than 2.5 standard deviations above or below its rolling mean.

n.b. pricing of (commodity) futures contracts is only considering the immediate front month. 

denotes multiple week inclusion

Extremes above the Mean (at least 2.5 standard deviations) 

Australian 10 year minus 2-year bond yield spread

Australian 10 year minus 5-year bond yield spread

TBT *

U.S. 20 and 30-year bond yields

Arabica Coffee

AUD/CHF

CAD/CHF

EUR/CHF

PX Index

ASX 200 Index

Overbought (RSI > 70)  

Copper/Gold Ratio *

Indonesian and Japanese 10-year bond yields

U.S. 5 year minus 5-year breakeven inflation rate spread *

U.S. 10 year minus 10-year breakeven inflation rate spread *

North European Rolled Steel *

U.S. Midwest Hot Rolled Coiled Steel *

Gasoil Heating Oil Crack Spread

Chinese RMB

USD/IDR

Hungary’s BUX Index *

Singapore’s Strait Times Index *

And Poland’s WIG Index

The Overbought Quinella (Both Overbought and Traded at > 2.5 standard deviations above the weekly mean) 

Japanese 2-year bond yield *

COP/USD *

Extremes below the Mean (at least 2.5 standard deviations) 

TLT

Australian Coking Coal

Lean Hogs *

Lithium Hydroxide *

CAD/JPY

CHF/JPY

EUR/JPY

USD/KRW

Oversold (RSI < 30) 

Iron Ore (SGX and China CFR)

USD/CNH

The Oversold Quinella (Both Oversold and Traded at < 2.5 standard deviations below the weekly mean) 

None

Notes & Ideas:

Government bond yields rose, again…again!

Austrian, Belgian, Canadian, Danish, Spanish, German, Finnish, French, British, Italian, Dutch, Portuguese and Swedish 10-year bond yields.

Also, in a 5-week rising streak are British, German and U.S. 20’s and 30’s.

Many shorter dated (2’s and 5’s) yields fell.

Aussie 10 year minus U.S. 10-year bond yield spread performed a bearish outside reversal.

Aussie yields along with Chinese, Korean, Norwegian, Kiwi and Turkish 10-year yields fell and broke their 4 weeks of decline.

And the U.S. 3-month bill is no longer overbought.

Equities were quieter.

HSCEI, the Hang Seng, Singapore’s Strait Times and Australia’s Financials Index have risen for 5 weeks.

The former has risen 16% over that time.

The latter has risen for 7 of the past 8 weeks.

The Nasdaq biotech index and Türkiye’s BIST have declined for 4 consecutive weeks.  

South Korea’s KOSPI has fallen for 6 weeks.

Commodities prices were mixed, with a bias for weakness.

Coffee, Steel, Platinum, Urea and Gasoil were the notable gainers.

Coal, Crude Oil, Hogs, Gases Lithium and Lumber were amongst the largest decliners.

The Copper/Gold Ratio and Urea have risen for 4 weeks.

Tin and Gasoil have climbed for 5 weeks.

While North European Hot Coiled Steel and Gasoil crack spreads have risen for 6 weeks.

The latter soared 24% in the past week alone.

JKM LNG as priced in Yen and Gasoline declined and snapped their 4-week winning streaks.

Cattle prices rose and snapped a 5-week losing streak.

JKM and Dutch TTF Gas fell and broke 5 weeks of advance.

Australian Coking Coal & Natural Gas have fallen for 5 weeks.

Lithium Carbonate and Hydroxide have sunk for 7 weeks.

Currencies were active.

The Aussie was weaker except against the USD where it has risen for 5 consecutive weeks.

The Loonie was lower.

Euro was firmer and the British Pound was mixed.

The Yen was notably higher while the USD was weaker.

EUR/AUD and JPY/AUD rose to snap a 4-week decline.

While the pairs of USD/CNH, USD/KRW and USD/SGD have fallen for 5 straight weeks.

The larger advancers over the past week comprised of; 

Cotton 2.3%, Copper 1.7%, Arabica Coffee 5.8%, Cattel 2.1%, Rotterdam Coal 1.5%, North European Steel 2.1%, U.S. Midwest Steel 3%, Orange Juice 9.3%, Palladium 2.2%, Platinum 3.4%, Tin 2.5%, Urea 4.6%, Gasoil 6.8%, Gasoil crack spread 24.1%, All World Developed ex USA 1.9%, BUX 2.2%, CAC 1.6%, DAX 2.1%, HSCEI 4.1%, Hang Seng 3.7%, Bovespa 2.3%, MOEX 2.8%, Nasdaq Composite 1.6%, KLSE 1.4%, KSE 3%, NIFTY 2.6%, Stockholm 1.5%, PX 1.9%, SA40 1.8%, Sensex 2.7%, S&P 500 1.1%, VN Index 3%, WIG 2.7%, ASX Financials 1.6%, ASX 200 2.3%, ASM Materials 2% and the ASX Industrials rose1.6%.

The group of largest decliners for the week included; 

Australian Coking Coal (6.1%), Aluminium 2.5%, Bloomberg Commodity Index (2.1%), Brent Crude (9.1%), WTI Crude (5.1%), DXY (1.6%), Palm Oil (1.7%), Iron Ore (1.8%), Lean Hogs (4.7%), JKM (2.5%), Lumber (6.2%), JKM in Yen (6.8%), Lithium Hydroxide (7.8%), Newcastle Coal (1.4%), Natural Gas (4.3%), Lithium Carbonate (5.7%), Gasoline (4.2%), Sugar #16 (2.1%), S&P GSCI (2.1%), China CFR Iron Ore (3.4%), CRB Index (2.7%), Dutch TTF Gas (7.1%), Gold in CHF and EUR (1.6%), Corn (5.1%), Oats (3.6%), Soybean (5.3%), Wheat (5.7%), DJ Transports (6.4%), FTSE Saudi (2%), SET (1.3%), SOX (4.3%), TA35 (2.4%), Nasdaq Transports (4.4%), BIST (3.5%) and XBI biotech ETF fell 2.3%.

August 2, 2026

By Rob Zdravevski 

rob@karriasset.com.au

Unknown's avatarAbout Rob Zdravevski
Global Investment Advisor & Portfolio Manager Australian based, Global Work rob@karriasset.com.au

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