Autralian dollar hangs on as oil rages


DXY took a breather:

AUD firmed:

Brent and gold running together is not a good sign for everything else:


Copper and Aluminium are warm:

Miners kicked:

EM wants to break out:


Something hit junk:

Yields up:

Stocks down:


The AI party has a problem. Oil is breaking higher:

Oil stocks are the new AI:


If this continues, rate cuts will be ended everywhere.

This has been a maro rally, and nothing is more of a macro killer than oil seeking a level of demand destruction.

I would expect it to be DXY positive and AUD negative though the latter will be aided by the huge short and gold if it runs in tandem.

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.