DXY jumped Friday night as EUR and CNY fell:
The Australian dollar was hammered:
Oil was strong:
Metals were not:
Big miners were butchered:
EM stocks fell:
Treasuries were dumped:
Aussie bonds bashed:
Stocks fell but hung on:
The mover was US jobs which came in strong again ( all charts from Calculated Risk):
Total nonfarm payroll employment increased by 224,000 in June, and the unemployment rate was little changed at 3.7 percent, the U.S. Bureau of Labor Statistics reported today. Notable job gains occurred in professional and business services, in health care, and in transportation and warehousing.
…The change in total nonfarm payroll employment for April was revised down from +224,000 to +216,000, and the change for May was revised down from +75,000 to +72,000. With these revisions, employment gains in April and May combined were 11,000 less than previously reported.
…In June, average hourly earnings for all employees on private nonfarm payrolls rose by 6 cents to $27.90, following a 9-cent gain in May. Over the past 12 months, average hourly earnings have increased by 3.1 percent.
Headline was good:
Jobs growth has slowed but remains strong:
The UE rate lifted marginally:
Shadow slack is still apparent:
Wage growth eased but remains decent:
Another Goldilocks report. The probability that the Fed will cut more than twice collapsed near zero:
Seems about right. The Fed definitely only in the frame for one or two “insurance cuts” now. That’s a big pressure release for Aussie dollar bears.