See the latest Australian dollar analysis here:
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.