DXY is up and EUR down.
AUD doesn’t care because Chyna!
Lead boots are not so persuaded.
Oil sense, gold trouble.
Metals scream Chyna!
Even big miners!
EM meh.
Yields edged up.
Stocks stalled.
Chyna! is going to yawnulate again! And consolidate!
No it isn’t. But we can enjoy the rally while it lasts. Oddly, Europe is coming off and DXY is trying to rise at the same time, which is the opposite of what one would expect.
Any move to consolidate Chyna’s! renewable sector would benefit European industry more than the US.
Perhaps it is the trade negotiations that are taking precedence for FX, as Chynese! consolidation lifts prospects for a Trump deal.
Or, maybe it’s just the big DXY short.
I will wait and see if we get a more traditional FX reaction to Chinese yawnulus before declaring for a stronger AUD.
