Australian dollar buffeted by US inflation rip

DXY is back for now:

AUD is struggling to regain momentum:

JPY is on the march:

Oil is dead cat bouncing:

Metals took the hint:

Miners too:

EM is so yesterday:

Junk is stalled but fine:

The curve flattened:

Stocks are about as convincing as Jim Chalmers:

US inflation came in stronger than expected but it is irrelevant. Rents via OER are still all that matter, and a one month jump will more than reverse in due course:

NVDIA gave the market some positive rhetoric as well and triggered the one-day party.

Nothing but noise here. Expect the Fed to cut 25bps and for more pressure on risk as the global slowdown continues.

High-beta currencies like AUD will follow the broader trend until greater clarity emerges entering 2025.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.