DXY was firm last night as we await the Fed:
AUD was whacked again:
CNY is all over the place as rumourtage overtook zero-COVID:
Oil and gold yawn:
Base metals pretended to care:
Miner dead cat bounced:
And EM stocks:
Junky is funky:
Yields are signaling more hawkish Fed as the curve is pancaked:
Stocks read the room for once:
Yield spreads between the US and Australia are in free fall as the RBA turns cautious and the Fed plows on. Short-end rates, which are supposed to be more important to FX hot money flows, have never been this negative, not even when the AUD was sub-50 cents:
Offsetting that some is the much steeper yield curve in AUD, implying better growth:
However, I can’t see that lasting as the global economy falls apart in 2023 and takes commodities down with it.
