Australian dollar falls away as Fed hike approaches

Tuesday 25 September 2018

AUD has been sold all day today as we head into the September Fed meeting that begins tonight. I’ll be surprised if the strength that we’ve seen in the AUD counter-trend rally is already exhausted:

Bonds are still getting hosed as oil takes off:

XJO is nowhere:

Iron ore futures are down:

Big Iron is up anyway:

Big Gas is flying. WPL has a very bullish chart:

Big Gold is in the dirt:

Big Mortgage is joining it:

And Big Realty is still only pricing a housing ripple:

The Fed outcome will be all about the dots this meeting (not released until Thursday our time). The last set of forecasts were modestly upgraded:

Expect the same again.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.