Australian dollar clubbed as stretched markets snap

DXY was up again Friday night:

Australian dollar snapped lower:

Though couldn’t outpace EMs:

Gold held:

Oil stalled:

Metals puked a little:

Miners more:

EM was OK:

Junk too:

As US bonds were bid:

Driving stocks to new highs:

Pretty much as expected. We are increasingly headed into choppy forex conditions as very stretched markets try to work off some excesses. EUR longs are still very high:

And they are being buffeted by rising COVID cases:

As US cases fall:

But the US recovery is still stuffed:

And DXY is also hurt by Trump’s last stand:

Looks like a lot more wood to chop for DXY to keep falling and the Australian dollar to keep rising.