Australian dollar relief as greenback pukes
David Llewellyn-Smith | Aug 30, 2023 09:22
DXY finally took a breather last night:
AUD bounced:
Dirt is happy:
Miners and EMs too:
The Treasury curve is turning from stupid bear steepener to smarter bull steepener:
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As the robots go hogwild for stocks again:
It was all driven by US JOLTS which hosed off the Fed:
Yawn. This has been obviously coming for a while.
I do not think that the falling DXY rally will last long. The underlying reality has not changed. US growth is still much better than Europe and China.
Chinese prospects are getting worse, not better, as unstimulus lets the property crash completely get out of control. CNY has not bounced at all:
And Europe is headed into deep recession with a bullet:
Precisely how an additional external shock coming from a stalling US labour market will help either is not apparent to me.
All AUD rallies are for fading.
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