Australian dollar belted with commosites

DXY firmed last night as EUR eased:

AUD flamed and fell all the way back:

EMs were better too:

Gold fell:

And oil:

Plus metals:

Big miners were hit:

EM stocks too:

As US junk flies:

Treasuries sold:

And bunds:

Aussie bonds are still hung up:

Stocks were roughly flat:

So, the AUD still can’t get off its knees. I still see it under further downwards pressure. US out-performance is not done. Financial conditions have eased considerably:

The property market is responding:

And inflation is contained but still around:

Though there is further slowing ahead in the industrial economy:

By comparison, Europe is still faring worse. With tighter financial conditions:

Less inflation:

And more downside for industry:

US growth out-performance means a strong DXY versus EUR which weighs on EMs and commodites. The AUD cannot recover until or unless European and global growth overtakes the US.

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