Australian dollar rides foaming at the mouth FOMO

Tuesday 15 November 2022

DXY continued its swoon overnight but was saved by a momentary restoration of reason when a few Russian missiles accidentally landed in Poland:

The AUD crash-up was only momentarily disrupted:

Oil is not taking off:

Dirt faded:

Miners pushed on:

EM stocks crashed upwardly:

Junk too:

But the US Treasury curve kept flattening despite falling yields:

Stocks party:

Chinese data was terrible but that’s now cause for celebration on looming stimmies! The US PPI was marginally better than feared at 8% versus 8.3% and that sent markets into another melt-up.

This is still all about positioning and momo for mine. Sticky inflation has not budged and another Fed rug pull is coming if it stays where it is:

But we are first going to get some foaming-at-the-mouth FOMO for AUD.

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.