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.
