DXY is doing nothing:
AUS has spent a few days ripping into “no landing” excitement but is technically stuck in a neutral wedge:
No support from North Asia:
Oil dipped and ripped. Gold bubble inflating:
Along with base metals:
Goldman got miners with a well-timed dead cat upgrade:
EM still considering higher:
Junk BTFD:
But yields just won’t go away:
Which has bogged down stocks:
There wasn’t much data, and the oil calm looks like it is before the storm outside Rafah.
AUD is torn between the China bear and global “no-landing” hopes.
For me, the story still tilts bearish, given I see the former as more material for AUD than the latter.
Also, if we really get a reflation, it will jeopardise risk forex via higher yields quickly while oil is being artificially supported.
That said, the crazy AUD short makes short squeezes very likely.
The neutral wedge pattern looks as good a read as any at this point:
AUD duking it out in the mid-60s for now.
