A Madman bombs the Australian dollar
DXY has the bid. AUD is chopping wood after the fall. Risk is lower. The twins of doom are approaching the hell cross. Metals are not exactly euphoric. Big miners appear to be in trouble. Peripheral equity is letting go. Junk is breaking again. This time with the long-end bid. Hello growth shock! Stocks and The post A Madman bombs the Australian dollar appeared first on MacroBusiness .
The Australian Dollar fell 0.34% on Wednesday, trading near 0.6960 and dropping below the 0.7000 level. According to FXStreet, this decline followed stronger-than-expected US inflation data, which fueled a broad-based rally in the US Dollar. The US Consumer Price Index rose to an annual rate of 3.7% in September, up from 3.4% in August, while core CPI increased to 2.6% year-on-year.
The inflation data has led markets to increase the probability of Federal Reserve interest rate hikes, with the chance of a 25-basis-point increase in October rising to 47% and the likelihood of a December hike increasing to 41%. FXStreet notes that the repricing of these expectations has driven US Treasury yields higher. MacroBusiness reported that the AUD is struggling following the fall, noting that risk is lower and big miners appear to be in trouble.
Brief written by urgent.news from MacroBusiness, FXStreet — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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