DXY is falling again.
AUD launched.
CNY is supportive.
Japan is better but no cigar.
Gold is good.
AI metals, or should we call them Fed metals, jumped.
The chosen one is back.
EM lagging.
Junk is green.
Yields are green.
Stocks are green.
With the FOMC and RBA charging in apparently different directions, if the AUD can’t catch a decent bid and make a run for 68 cents, it never will.
I do not view yesterday’s Aussie inflation figure as fundamentally altering the inflation outlook. It is obviously a surge in cost-push inflation from the gas cartel.
In due course, the Albanese government will have to do something. That will be fake gas reservation coupled with restored power rebates to bridge the gap to modestly lower energy prices.
But for now, the situation remains unchanged, with inflation rising in Australia while US inflation decreases.
With the two central banks pinned to such starkly different courses, the AUD can only rise for a time.
