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Australian dollar hammering continues

au.investing.com/analysis/australian-dollar-hammering-continues-200527189
Australian dollar hammering continues
By David Llewellyn-Smith   |  Sep 28, 2022 09:30
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AUD/USD
+0.18%
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EEM
-0.33%
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Copper
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LCO
+0.23%
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CNY/USD
+0.14%
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DXY to the moon:

 

AUD flushed:

Oil held up as Putin asked OPEC to fund his war with output cuts:

Base metals still in big trouble:

Big miners (NYSE:RIO) survived with iron ore:

EM (NYSE:EEM) flushed:

Junk (NYSE:HYG) flushed:

Treasuries flushed:

Stocks cling desperately to the cliff’s edge:

And the key chart, CNY/USD, was flushed to perhaps the most significant chart support level in modern Australian economic history:

For if CNY breaks through this level decisively then all hell is going to break loose in markets as it confirms that:

  • China is going ex-growth as its property market adjusts structurally lower;
  • China has no intention to rebalance its economy unleashing all kinds of trade war blowback;
  • EM economies are now in direct competition with the largest trade gorilla ever landed on their shores;
  • DXY has not topped out and EM economies will also see capital fleeing their shores;
  • any and all EMs are at risk of imminent external crisis;
  • stock prices are still too high;
  • and, commodity prices are going much lower right along with the AUD.

The good news is, it will crush global inflation, which markets will understand in due course.

Australian dollar hammering continues
 

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Australian dollar hammering continues

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