Australian dollar smacked with global stock markets

au.investing.com/analysis/australian-dollar-smacked-with-global-stock-markets-200579008

By David Llewellyn-Smith | Sep 22, 2023 09:09

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DXY held the gains:

AUD was smacked:

CNY is deteiorating again:

Oil eased. Gold fell:

The Crap Complex of dirt, miners, EM and junk all puked:

As Treasury yields bull steepened:

Which hammered stocks, especially tech. The support levels don’t look likely to hold:

It is not complex. The Fed has blown up the Treasury market, and all assets are repricing for higher yields.

Given the mounting economic headwinds everywhere, I don’t think the bull steepening makes any sense. But if that’s what it takes to finish off the financialised business cycle, then so be it.

The Fed is also cornered by oil and will have to take it on. To me, that says bear not bull steepening but whateves.

The always bullish stock market squeezed an extra year from the business cycle, but it is now priced for fantastical growth in 2024. That needs to be repriced for falling earnings and higher yields, a squeeze on P&E.

While this adjustment takes place, expect DXY to run higher with yields and safe haven flows.

The AUD is protected by immense short positions, but it is going lower as long as this rerating transpires.

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Central Banks

Interest Rates

Next Meeting

RBA

4.35%

Jan 02, 2024

BOE

5.25%

Dec 14, 2023

ECB

4.50%

Dec 14, 2023

FED

5.50%

Dec 13, 2023

SNB

1.75%

Dec 14, 2023

BOC

5.00%

Jan 24, 2024

RBNZ

5.50%

Feb 28, 2024

BOJ

-0.10%

Dec 19, 2023

CBR

15.00%

Dec 15, 2023

RBI

6.50%

Dec 08, 2023

PBOC

3.45%

BCB

12.25%

Dec 13, 2023

S&P/ASX 200	7,194.90	+21.60	+0.30%
ASX 200 Futures	7,221.5	+36.5	+0.51%
ASX All Ordinaries	7,405.60	+20.90	+0.28%
US 500	4,603.2	+17.6	+0.38%
Dow Jones	36,247.87	+130.49	+0.36%
China A50 Futures	11,302.0	-16.0	-0.14%
Dollar Index	103.965	+0.461	+0.45%

Crude Oil WTI	71.26	+1.92	+2.77%
Natural Gas	2.552	-0.033	-1.28%
Gold	2,020.80	-25.60	-1.25%
Silver	23.290	-0.769	-3.20%
Copper	3.8340	+0.0365	+0.96%
US Sugar #11	23.41	+0.38	+1.65%
US Coffee C	177.70	+0.20	+0.11%

Australia 10Y	4.354	+0.041	+0.95%
Australia 5Y	4.016	+0.054	+1.36%
New Zealand 10Y	4.982	+0.036	+0.74%
U.S. 10Y	4.229	+0.100	+2.43%
Japan 10Y	0.767	-0.005	-0.65%
China 10Y	2.698	+0.010	+0.37%
Singapore 10Y	2.885	+0.009	+0.31%

CSL	266.92	+0.43	+0.16%
Woolworths	35.770	-0.080	-0.22%
ANZ Holdings	24.610	+0.010	+0.04%
Commonwealth Bank Australia	106.440	+0.170	+0.16%
Telstra Group	3.840	0.000	0.00%
National Australia Bank	29.200	+0.010	+0.03%
BHP Group Ltd	47.740	+0.320	+0.67%

Australian dollar smacked with global stock markets

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