This time last week interest rates had backed up agressively thanks to stunning ADP Payroll report and stubborn inflation-fighting FED comments.
Roll forward to today and interest rates and currencies have U-Turned resulting in USD breaking support against many currencies.
DXY broke triple bottom support at 100.50+
USD / CHF in freefall
Cable too
Thanks to Mohamed El-Erian quoting Financial Times
Currently China has almost zero CPI and is increasing money supply whilst US, EU, Japan and UK have high CPI and are decreasing money supply.
Reverse Repo
FED Reverse Repo drops 10% from high as cash flow into buoyant stocks, crypto etc
US CPI and PPI
Headline CPI prints low, core not so much but remember the large increases a year ago are dropping off
PPI was weak too
Treasurer Chalmers announces a new RBA Governor
The ‘outside insider’ tasked with forging a new RBA [AFR]
China’s Consumer Price Y0Y fell from 0.2% to 0% YoY and the Producer Price Index (PPI) deeper into negative territory at -5.4%.
Along with a near 50% drop in the price of Iron Ore in the last 2 years, China's economic collapse is bad news for the Australian economy.