DXY is booming again as EUR crashes:
The Australian dollar is strong but DXY saved its blushes:
Gold is hanging but must at risk as DXY rampages:
Oil caught a bid:
And metals:
Plus miners:
And EM stocks:
Having discounted zero, junk is off and running:
Bonds were bashed:
Stocks euphoric:
Westpac has the data wrap:
Event Wrap
Eurozone Jan. industrial production reflected the weakness in national releases, contracting 2.1%m/m (est. -2.0%m/m), with the annual rate well below expectations at -4.1%y/y (est. -2.5%y/y).
Event Outlook
RBNZ Governor Orr will speak to the Parliament Select Committee this morning following yesterday’s release of the February MPS.
RBA Governor Lowe will be on a panel at the Australia–Canada Economic Leadership forum, 11:15am AEDT.
US CPI inflation is expected to remain above 2.0% on an annualised basis. The headline rate is expected to lift, but the core rate should remain around 2.3%yr.
And Europe will only get worse as the virus shock lands on its export model risking outright recesssion:
As the US consumer parties on:
Driven by solid wage growth and cheap energy:
Cheap mortgages:
Booming houses:
And releveraging:
The US consumer is in rude health.
We can be thankful that the runaway USD will cap the AUD as the RBA dithers.
