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Australian dollar free falls with oil

Published 27/04/2023, 09:33 am
Updated 09/07/2023, 08:32 pm

DXY has a very bearish chart but not yet broken. EUR is the mirror image:

DXY

AUD is right at terminal support preventing a free fall to the October lows:

AUDUSD

Gold was OK, oil smashed:

BRENT

Other commods hung on:

COPPER

Miners (NYSE:RIO) dead cat bounced:

RIO

EM stocks (NYSE:EEM) also look very bearish:

EEM

Junk (NYSE:HYG) hung on:

HYG

As yields popped a little:

YIELDS

Stocks want to go down suddenly:

SPX

We appear poised for a serious risk-off event:

  • Oil is howling recession as it falls through OPEC cuts.
  • Copper is sitting on terminal support.
  • Stocks are weakening despite better-than-expected earnings.
  • The EM bid is evaporating,
  • Yields are hanging on as central banks keep hiking into growth shock signals.

DXY has a very bearish chart but it does not align with my macro views that the debt-ceiling debacle is bullish and Europe is the next growth shoe to drop with a hugely overbought EUR stock bid to go with it.

So, I am not confident about the major crosses but AUD appears poised for lower as the North Atlantic recession crowds in.

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