Australian dollar pumps and dumps on Fed 50

DXY dumped and pumped as the Fed cut 50:

AUD did the reverse with a nasty candle top:

North Asia up:

Oil and gold down:

Metals too:

And miners:

EM puke:

Junk knows only soft landing:

Yields sold the fact:

Stocks printed a second nasty candle top:

The Fed cut 50bps but Jay Powell was a bit weird about it:

“The committee is not in a rush, we will move as fast or as slow as we think is appropriate. No one should look at the 50bps cut and say this is a new pace.”

Why do it then? The dot plots now signals:

• 50bps more in 2024
• 100bps more in 2025
• 50bps more in 2026

With a terminal rate of 2.85%:

AUD sold the first cut and there may be more ahead.