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Australian dollar falls through EUR trap door

Published 18/04/2023, 10:02 am
XAU/USD
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DX
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GC
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TIOc1
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DXY continued its bounce off support last night as EUR contracted:

DXY

Australian dollar fell again:

AUDUSD

Oil and gold pulled back:

BRENT

Dirt is in the great sideways:

COPPER

Miners (NYSE:RIO) firmed with iron ore:

RIO

EM (NYSE:EEM) yawn:

EEM

Junk (NYSE:HYG) yawn:

HYG

Yields are fast pricing out any US credit crunch:

YIELDS

Stocks only go up:

SPX

It’s not terribly convincing in any way. The stock rally has once again overcooked everything and yields are rising to cut it off.

Previous bouts of this dynamic have resulted in downdrafts for the AUD as EUR retraces violently. The same setup is in play again with EUR hugely overbought.

EU FUTURES
EURUSD OPTIONS

For no reason at all:

EURUSD

Europe is only trailing the US into a recession by a quarter and the ECB is still much more bullish than the Fed.

Remember, where the EUR goes, the AUD follows:

EURUSD2
 
 

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