Elon Musk sends Australian dollar barmy!
David Llewellyn-Smith | Apr 05, 2022 09:39
DXY looks like its consolidating for breakout:
But AUD is already there!
Commodities rebounded:
And EM stocks (NYSE:EEM):
Junk (NYSE:HYG) jumped:
Get The App
The curve steepened for once:
Stocks to the moon as tech flies Elon Musk and Twitter (NYSE:TWTR):
Westpac has the wrap:
Event Wrap
US factory orders in Feb. fell 0.5%m/m (est. -0.6%m/m, prior revised to +1.5%m/m from +1.4%m/m), with ex-transport +0.4%m/m (est. +0.3%m/m. prior revised to +1.2%m/m from +1.0%m/m). Durable goods were finalised at -2.1%m/m (est. -2.2%).
Germany’s trade surplus in Feb. recovered to EUR11.5bn (est. EUR10.1bn), with gains in both exports and imports.
BoE’s Cunliffe (the dovish dissenter at the last MPC meeting) acknowledged that further tightening may be necessary, but was concerned about high commodity depressing activity, and also that medium-term inflation could undershoot due to the Ukraine war.
Event Outlook
Aust: The RBA will keep rates on hold at their April meeting; focus will be centered on any shift in rhetoric concerning the timing of the tightening cycle, which Westpac expects to begin in August 2022.
Japan: Elevated cost pressures and weaker wages growth are expected to begin squeezing household spending in February (market f/c: 2.7%yr). The final estimate of the March Nikkei services PMI is also due.
Eur/UK: The final estimate for the Markit services PMI is due for both the Eurozone and the UK (market f/c: 54.8 and 61.0).
US: The trade deficit is set to remain wide in February given the strength in demand and inventory procurement (market f/c: -$88.5bn). The Markit and ISM services PMI should continue to reflect a robust pace of growth in the sector (market f/c: 58.9 and 58.4 respectively). Meanwhile, the FOMC’s Brainard and Williams are due to speak at different events.
Elon Musk is quietly buying up Twitter taking a 9% passive stake and that is enough to save the world for a day. The rising number of rate cuts being priced into the US curve did nothing to hurt long-duration tech, either:
“Risk on” lifted AUD and a boom and bust lies ahead.
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.