The commodity bloc wobbles as oil slides again.
Currency markets and particularly the commodity bloc of currencies are getting a bit antsy with falling again as the OPEC ++ deal in its current format sorely disappointed relative to market expectations even if executed to the letter. But even more worrisome is that it failed to address the immediate structural oversupply, leaving oil prices vulnerable, especially with even the most bullish oil traders worried about backing the wrong horse at current levels. Markets believe the deal won’t come close to offsetting demand devastation and isn’t even large enough to eat into what’s in storage.
The Australian dollar struggled for traction today as profit-taking set in as the PBoC rate cuts failed to inspire as commodities have been unable to fire higher and are falling as Oil prices continue to wallow in a thickening sea of crude.
Given this is a bit of a contrarian view, I’m more than prepared for the fact that 6450 is going to be…