DXY is at the breaking point. EUR is soaring.
AUD should be catapulting, but markets are beginning to understand that Labor’s immigration-led growth model produces no inflation.
Lead boots plod higher.
Gold has lost its energy. Oil bottom.
Metals reflation is here.
Except for the big bears.
EM yawn.
Junk on the verge of a party.
As yields ease.
Stocks ATH.
Markets are pricing in rate cuts everywhere. The US tariff inflation does not appear to be as bad as feared (though it is early days) and markets are moving ahead of the Fed.
Rightly, AUD is lagging because its inflation is long gone and the RBA cycle horribly overcooked.
Inflation is gone Downunder and it is going to go much lower yet as rents, energy, imported goods and admininstered prices all collapse over H2.
I still think the path of least resistance is higher for AUD, but it’s not going to be grandfather’s AUD risk rocket as the RBA capitulates.
Then comes the Pilbara killer!
