| All the overnight action was in the currency markets. The Fed’s decision to delay interest rates rises is having a major impact on the flow of global capital. The Aussie dollar had a massive session, finishing at 78.95 US cents.
As I explained last week, traders got caught out by the Fed’s ultra-mega dovishness. They had positioned for the start of US interest rate ‘normalisation’…then the Fed wavered. As a result, the US dollar is now in correction mode as these bets are unwound. The Aussie dollar, commodity currencies and commodities more generally are all beneficiaries of this current unwind. The question is, how long will it run?..............................................Full Article: Source
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