DXY was flat last night:
AUD popped:
OIl and gold were stable:
Dirt lifted but this is not your grandfather’s Chinese stimulus:
Miners went stupid. Good short here:
EM yawned:
Junk hosed the Poliburo:
The US curve steepened:
Stocks firmed:
The AUD popped on Chinese stimulus but the only corroboration was iron ore miners. Everything else related yawned mightily and the key indicator, EM junk, didn’t want a bar of it.
The Politburo pledged a stable CNY but how it will achieve that as the economy slides away is not apparent.
As it currently comprised, the structure of the Chinese economy needs a much lower CNY to grow at all as it slides inexorably into its Japanese 1989-style domestic demand adjustment.
You could take a slash on the equity market right now and it would big up raincoats but that will not save China and the AUD.
