Australian dollar shorts puke again

DXY is treading water as we await the October US CPI:

AUD is weak:

Oil is trying

Dirt yawn:

Iron ore keeps going up but equities do not believe:

EM shite:

Junk bog:

Yield stall:

Stock stall:

CFTC positioning puked AUD shorts last week:

At -65 contracts, we are well off the record lows.

I would like to see another puke towards -50 before calling the all-clear on positioning that enables another down leg in the AUD.

But at current levels, we have probably cleared enough to punch through new lows if we get a strong US CPI.

None of that means it will happen just that it now could.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.