DXY is up and away!
AUD broke its rising channel.
Lead boots plodded over a cliff.
Gold hit, oil the shit.
Copper lol.
The big bear is back.
EM caput.
Junk reverse.
Yields firmed.
Stocks held up.
US GDP was at 3% in Q2, materially higher than expectations. ADP jobs rebounded above 104k. And the Fed remains hawkish on tariffs despite two abstentions. Bloomberg.
Federal Reserve Chair Jerome Powell said interest rates are in the right place to manage continued uncertainty around tariffs and inflation, tempering expectations for a rate cut in September.
“There are many, many uncertainties left to resolve,” Powell told reporters Wednesday following the central bank’s decision to once again keep rates unchanged. “It doesn’t feel like we are very close to the end of that process.”
Meanwhile, the Chinese Politburo did nothing. Goldman.
President Xi chaired the July Politburo meeting today (30 July).
Policymakers reviewed the current economic situation, set policy priorities for H2 this year, and discussed the proposals of the 15th Five-Year Plan.
The statement released following the meeting is largely in line with market and our low expectations.
Policymaker sappeared sanguine on China’s economic growth in H1 and less inclined for broad-based and significant stimulus measures in the near term.
This was below market expectations. There was nothing for property.
In short, the US is going strong while China weakens, and AUD was crushed as a result.
The enduring short is some downside protection, but so long as this setup continues, life will be hard for the battler.
