Australian dollar bears run for their lives

DXY is frozen:

AUD looks a little bullish:

North Asia is not helping:

The AUD bears are running for the hills:

Oil is meh:

Goldman’s copper bubble is inflating nicely:

Opening big miner jaws:

EM breakout signals weak US CPI to come:

Junk is back:

Yields and stocks are frozen:

Markets await this week’s US CPI. They are learning dovish but mostly stuck in fright.

The running of the AUD bears is part of this at the margin, but they are probably spooked mainly by the Q1 CPI.

It is panic because Aussie data has collapsed ever since.

That said, I think the Q1 “no landing” inflation scare is likely over, and DXY will soften as Fed cut hopes revive, so there are good reasons for lightening up the bearish AUD bet.

I remain modestly bullish.