EUR

• US yields. Swings in US yields over the past few days on the back of Treasury news has generated some FX vol. AUD near top of its multi-week range.• AU jobs. Cracks in the AU labour market are widening. Unemployment at 2021 levels. RBA may not need to hike rates again. AUD headwinds building. Global Trends A few more ructions across markets over the past couple of sessions. But rather than being geopolitically driven the gyrations related to developments in the US bond market, and this spilled over into other asset classes like FX. Yesterday the US Treasury announced...

• Shaky sentiment. US equities slip back as long end bond yields climb higher due to inflation & debt burden worries. AUD & NZD lose some ground.• Macro data. Australian wages due today & the jobs report is out tomorrow. Data flow could challenge the markets RBA rate hike thinking. Global Trends Market wobbles continued overnight with a modest bout of risk aversion dragging on things like US equities (S&P500 -0.7%, NASDAQ -1.3%), copper (-2.3%) and precious metals (gold -1.9%), as well as cyclical currencies such as the AUD (now ~$0.7085) and NZD (now ~$0.5874). Interconnected worries about inflation and...

• Market wobbles. Geopolitical tensions underpin oil prices. Equities drift back. Run of weaker US data has weighed on USD. AUD near multi-week highs.• Data pulse. Global PMIs in focus later this week. Australian jobs report also due (Thurs). Data might challenge (or reinforce) markets RBA rate hike thinking. Global Trends Geopolitical and macroeconomic crosscurrents have generated more, albeit modest, gyrations across markets over the past few sessions. US equites drifted back overnight with the S&P500 (-0.5%) recording its third fall in the past six sessions, while long end bond yields ticked up. At ~4.72% the US 10yr is near...

• Consolidation. Modest burst of vol. following a benign US CPI report. US equities ticked up. Oil dipped. AUD range bound. NZD underperformed.• US Fed. Softer US inflation & cracks in the jobs market ease the pressure for the US Fed to hike. US producer prices due tonight & retail sales out on Friday. Global Trends There was a modest burst of intra-session volatility overnight, induced by a benign and as predicted US CPI inflation report, but the net swings across markets were rather muted. US equities ticked up slightly (S&P500 +0.3%), however this comes after a couple of softer...

• Consolidation. Limited news flow constrained market moves. Oil ticked up, US equities dipped a bit. AUD tracked sideways after RBA held steady.• Macro pulse. No change by RBA, but kept door open for more, if required. US CPI tonight. US inflation may trigger some vol. as rate expectations adjust. Global Trends There was little fresh geopolitical or economic news released overnight, hence market moves were rather subdued. Middle East headlines were mixed with the mediator between the US/Iran suggesting the two sides were “close to some sort of arrangement” over the Strait of Hormuz, yet at the same time...