Blip largely erased
The US dollar has begun to strengthen once again as the dip buyers in equities fail to get any real traction.
The drops in AUD and NZD are particularly stark given the blockbuster Australian jobs report and very strong New Zealand GDP data. Both tried to bounce in the past hour but have failed.
I think the equity market is in charge at the moment. There’s a school of thought that the Fed signaling a hike now doesn’t matter because it’s so far off in the future and that two hikes in 2023 are no big deal. I think it takes more than a few hours to price in that kind of charge. I suspect we see more equity selling before there’s a real dip to buy.