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Australian dollar sags with US inflation

Published 03/04/2023, 08:43 am
Updated 09/07/2023, 08:32 pm

Nothing could give a clearer signal of diverging market views on the outlook. DXY rose:

 
DXY

AUD sagged:

AUDUSD

Gold eased. oil is at resistance:

BRENT

Dirt is all over the place:

COPPER

Miners (NYSE:RIO) gained:

RIO

EM (NYSE:EEM) too:

EEM

Junk (NYSE:HYG) popped:

HYG

Yields fell:

YIELDS

Stocks want to break out:

SPX

The fuel was PCE which came in softer than expected:

PCE

Core PCE at 0.3% is a considerable improvement from where we started but wages are still strong so the Fed cannot relent yet.

Moreover, if stocks keep running, expect consumption to lift and pressure on prices to build again.

Unless or until the regional bank credit crunch bites.

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