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Australian dollar bear market bounces

au.investing.com/analysis/australian-dollar-bear-market-bounces-200536914
Australian dollar bear market bounces
By David Llewellyn-Smith   |  Nov 23, 2022 10:50
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AUD/USD
+0.19%
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EEM
-0.33%
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LCO
+0.13%
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ESZ2
-0.15%
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HYG
+0.37%
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DXY
-0.06%
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DXY softened last night:

 
DXY
DXY

AUD firmed:

AUD
AUD

All of the usual followed with EM (NYSE:EEM), junk (NYSE:HYG)and commods up:

BRENT
BRENT

COPPER
COPPER

RIO
RIO

EEM
EEM

HYG
HYG

But curve inversion got deeper again in the US:

Stocks are trading on DXY only:

SPX
SPX

There’s some improvement in Fed nowcasted inflation with all measures converging on the CorePCE at around 5% annualised:

INFLATION
INFLATION

As GDPNow booms:

GDPNOW
GDPNOW

There’s more headline inflation relief ahead but how the Fed can do anything but keep hiking aggressively with 4% GDP and 5% inflation is not clear to me.

The pace of hikes may be about to slow but they are still 50bps hikes!

Clearly AUD negative.

Australian dollar bear market bounces
 

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Australian dollar bear market bounces

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