Australian dollar firms as US recession builds

DXY was down last night, EUR up:

AUD firmed:

CNY will govern its course:

Commods were mixed:

Big miners weak:

EM too:

Junk is no man’s land:

As yields rise to Fed hawks:

Stocks are cooling off:

The Fed is still talking tough with Jay Powell in Congress suggesting two more rate hikes are the base case.

But DXY does not believe him. So long as it remains weak, the market has concluded that the Fed has done enough and inflation is done.

Not least because the US is the last major economy with a growth pulse:

With China refusing to use the stimulus bazooka and Europe virtually in recession already, if DXY can’t catch a bid soon then we have to conclude that the US economy is also about to break.