Risky times
• Risk aversion. Middle East developments have weighed on risk sentiment. Bond yields & equities lower, while gold, oil, & the USD have been supported.• AUD pressure. The backdrop is pressuring the AUD. But we think it is starting to look stretched on several metrics. A lot of ‘bad news’ could already be priced.• Event radar. US retail sales, China data, AU jobs, & NZ CPI due. RBA Gov. Bullock speaks, & there is a conga line of Fed speakers including Chair Powell. Events in the Middle East have been front of mind for markets. Risks that the conflict is...