AUDUSD daily

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  a boost and weighed on  commodities  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.