Commodity currencies track the renewed fall in US stocks

It has turned into a rough outing for the Australian dollar and its commodity cousins.

AUD/USD is down 90 pips, or 1.2%, to 0.7201 and is trading at a session low.

The move lower has tracked the reversal in US equity market sentiment and ongoing grind higher in Treasury yields. Optimism about a ceasefire initially gave equities Equities Equities can be defined as stocks or shares in a company that investors can buy or sell. For example, when you buy a stock, you are purchasing equity, thereby becoming a partial owner of shares in a specific company or fund.Equities do not pay a fixed interest rate, and as such are not considered guaranteed income. Consequently, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling p Equities can be defined as stocks or shares in a company that investors can buy or sell. For example, when you buy a stock, you are purchasing equity, thereby becoming a partial owner of shares in a specific company or fund.Equities do not pay a fixed interest rate, and as such are not considered guaranteed income. Consequently, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling p Read this Term a boost and weighed on commodities Commodities Commodities are assets that are either naturally grown or occurring in the environment. Most commonly this includes precious metals such as gold, silver, and palladium.Beyond metals, commodities can also focus on agricultural or industrial goods that are central to manufacturing or other sectors. This includes crude oil, copper, wheat, and others.Relative to other assets, commodities are an extremely complex form of investment, with many similarities and differences to existing products.Commodit Commodities are assets that are either naturally grown or occurring in the environment. Most commonly this includes precious metals such as gold, silver, and palladium.Beyond metals, commodities can also focus on agricultural or industrial goods that are central to manufacturing or other sectors. This includes crude oil, copper, wheat, and others.Relative to other assets, commodities are an extremely complex form of investment, with many similarities and differences to existing products.Commodit Read this Term that were bid up on sanctions. Now AUD is getting hit from both sides as ceasefire hopes continue while tech stocks continue to wilt.

There's a growing fear that an inflation shock has arrived that has ensured global central banks are behind the curve. It might mean a faster pace of hikes and/or hiking into a recession.

On the commodity front, there's an early sense that momentum for sanctions is near a peak. There's also evidence that Russian commodities will find there way to other parts of the world.

Ultimately, AUD and the other commodity currencies are proxies for global growth and the picture is worsening daily.