David Llewellyn-Smith | Apr 15, 2024 08:36
DXY is up and away:
AUD is back at critical support:
North Asia is under intense pressure:
Oil and gold hanging in there:
Base metals still chasing no landing:
But not big miners:
And EM hates no landing:
So does junk:
Yields fell but it was a steeper week for sure:
Stocks hate no landing:
The AUD bear frenzy on CFTC eased slightly last week:
But it is still a massively short position that usually weighs against significant moves lower.
Yet, here we are, with the AUD falling on a range of indicators giving markets nightmares about a ‘no landing’ scenario in which inflation re-accelerates:
However, equally, I can argue it is all a head-fake:
One is a ‘no landing’ scenario. The other is a ‘mungrel landing’ as various signals make a mess of everything.
If it is the former, then AUD is going to new lows as the Fed doesn’t cut or even hikes again.
If it is the latter, then AUD will oscillate in its mid-65 range.
I think the base case is still the second option.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.