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DXY sagged on soft retail sales:
AUD rose on more hawkish RBA rhetoric:
No help from North Asia:
Oil is a CTA mania machine:
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Saving base metals:
Miners less so:
Junk has stalled. This bodes poorly for any broadening of the stock rally:
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Despite falling yields:
Stocks had a day off:
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With European risk on the backburner for a day, the RBA’s stiffer rhetoric (not a tightening bias) played itself out in forex.
10 year Australian yields have almost flipped positive versus the US overnight, the first time since February:
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However, I wonder how far this trade can get with local inflation still set to fall, Europe in crisis, China stuffed and the AI favouring the US.
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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