AUD pressure builds as US-Australia yield spreads turn red

See the latest Australian dollar analysis here:

Macro Afternoon

The bond yield back-up of the last few days is starting to add some pressure to forex markets. US yields have been running higher since last week super jobs report:

But Australia is being left behind as China slows, commodities roll over and NSW sinks deeper into Delta crisis:

For the last week, the US curve has bull steepened while the Australian curve has bear flattened as we plunge into recession:

Thus US-Australia spreads have hit wides unseen for a year:

If it continues, and why wouldn’t it at least until the Fed is spooked, then the AUD pressures will mount.

Houses and Holes
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