Australian dollar bear market bounces
David Llewellyn-Smith | Nov 23, 2022 10:50
DXY softened last night:
AUD firmed:
All of the usual followed with EM (NYSE:EEM), junk (NYSE:HYG)and commods up:
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But curve inversion got deeper again in the US:
Stocks are trading on DXY only:
There’s some improvement in Fed nowcasted inflation with all measures converging on the CorePCE at around 5% annualised:
As GDPNow booms:
There’s more headline inflation relief ahead but how the Fed can do anything but keep hiking aggressively with 4% GDP and 5% inflation is not clear to me.
The pace of hikes may be about to slow but they are still 50bps hikes!
Clearly AUD negative.
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