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Australian dollar to keep falling on Fed hawks

au.investing.com/analysis/australian-dollar-to-keep-falling-on-fed-hawks-200528507
Australian dollar to keep falling on Fed hawks
By David Llewellyn-Smith   |  Oct 06, 2022 10:26
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EUR/USD
0.05%
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AUD/USD
+0.13%
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EEM
-0.33%
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Copper
-0.03%
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LCO
+0.18%
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RIO
+0.79%
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A solid rebound in DXY last night as EUR fell. The two trend channels are crazy perfect:

 

AUD is stalled for now:

Oil is going to rain on the bear market parade:

Metals followed:

Miners (NYSE:RIO) fell:

EM stock (NYSE:EEM) and junk (NYSE:HYG) flamed out:

Treasuries sold:

Stocks dumped and pumped to even:

There’s no good news on US inflation. The ADP and ISM services were rock solid and the Cleveland Fed headline index is rising even as CorePCE is stalled at 40bps per month:

There is no Fed pivot in these numbers. If it were to do so then reflation dynamics would roar into commodities and send US prices upwards from 5%.

The Fed is going to go 75bps in November and if still nothing changes, another 75bps in December.

AUD down.

Australian dollar to keep falling on Fed hawks
 

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Australian dollar to keep falling on Fed hawks

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