Australian dollar smashed again as risk retreats

DXY firmed last night as EUR fell:

It was wall-to-wall Australian dollar carnage:

Gold was bashed:

Oil eased:

And base metals:

Big miners fell at last:

EM stocks too:

But junk was OK:

Treasuries pulled a Costanza:

As did bunds:

Stocks fell:

The global industrial economy is slowing fast as Chinese demand fades away. Europe is leading the way, with Germany in particular in free fall with the new flash PMI:

Though the services sector bounce helped the wider composite:

The US is slowing too just not as fast, with regional PMIs suggesting a big fall in the ISM ahead:

Even though the Markit version is still powering:

Either way, Europe is slowing faster and deeper than the US and the ECB is further behind the curve in responding as usual as well so I continue to see the EUR pressured and, by extension, the AUD.

That’s before we even begin to fathom the depths of China’s growing trade war Downunder and looming rate cuts.

Comments are hidden for Membership Subscribers only.