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DXY softened last night:
AUD firmed:
All of the usual followed with EM, junk and commods up:
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But curve inversion got deeper again in the US:
Stocks are trading on DXY only:
There’s some improvement in Fed nowcasted inflation with all measures converging on the CorePCE at around 5% annualised:
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As GDPNow booms:
There’s more headline inflation relief ahead but how the Fed can do anything but keep hiking aggressively with 4% GDP and 5% inflation is not clear to me.
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The pace of hikes may be about to slow but they are still 50bps hikes!
Clearly AUD negative.
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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