Friday4th March 2022The Aussie dollar was one of the winners today, even as the US dollar lurches to highs not seen since the early days of pandemic. It’s been driven by demand for coal and iron ore, as almost all commodities respond to the shock of supply cuts from Russia and Ukraine. Jerome Powell was back on Capitol Hill today, again reiterating the need to control rising inflation. Jobs continue to be part of the problem (with the ISM read overnight showing a fall in services employment) along with rising commodity prices. NAB’s Gavin Friend points to studies from the NY Fed, one noting that the global supply chain pressure index eased in February , a sign, he says, that global supply chains will repair. The question is, how quickly? The ISM numbers overnight didn’t show any improvement.
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