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Australian dollar pressured as Fed hikes return

au.investing.com/analysis/australian-dollar-pressured-as-fed-hikes-return-200537681
Australian dollar pressured as Fed hikes return
By David Llewellyn-Smith   |  Nov 30, 2022 10:41
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DXY firmed a little last night:

 
DXY
DXY

AUD managed to bounce of false China hope too:

AUD
AUD

Oil is hanging on to support for dear life:

BRENT
BRENT

Base metals are stuck:

COPPER
COPPER

Big miners (ASX:RIO) are flying with iron ore:

RIO
RIO

EM stocks (NYSE:EEM) did better:

EEM
EEM

As junk (NYSE:HYG) surges on relentless China property announcements:

HYG
HYG

But US yields are firming again:

YIELDS
YIELDS

Which is squashing the bear market rally:

SPX
SPX

The Fed’s inflation nowcast model of CorePCE is unmoved as other measures float down to its level:

INFLATION
INFLATION

The Fed still has more work to do to unglue CorePCE.

Meanwhile, markets have been so busy with their reflexive reflation that they have set the Fed back by 225bps!

GUIDANCE
GUIDANCE

Nobody should ever accuse markets of being efficient. They are far from it. What they are is ruthless and will punish mistakes brutally. Even their own in due course.

I still see AUD lower as the recent reflation needs to reverse, and FCI hit new highs, to dislodge sticky CorePCE.

Jay Powell speaks tomorrow.

Australian dollar pressured as Fed hikes return
 

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Australian dollar pressured as Fed hikes return

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