Australian dollar flies with Powell dove

David Llewellyn-Smith

Thursday, 4 April 2024

DXY down:

AUD flew:

No help from North Asia:

Oil and gold in unusual embrace:

Dragging up metals:

But not miners:

EM pushing resistance:

Junk warning risk:

Yields chasing oil:

Stocks are OK unless oil rus on:

Three factors at work today.

Oil is running on recovering industrial demand, OPEC refusal to pump and Ukraine attacks in Russia.
Jay Powell still wants to cut, which will feed the oil bull run.
AUD is caught between the two.

These markets are about to turn volatile, and the AUD will be at the forefront.

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.