Australian dollar blown up by exploding oil

DXY is up and away:

Smashing the runaway AUD back down:

North Asia too:

Oil surged:

Metals rolled:

Miners too

And EM:

Junk is fine

Yields lifted:

Stocks eased:

A doddering Joe Biden suggested Israel might bomb Iranian oil fields and here we are.

Strong oil is always strong DXY these days.

I don’t think bombing Iranian oil fields is in the Biden administration’s interest entering an election so this is probably spit balling by a fading mind.

Pump pain is one of the top priorities to avoid for an incumbent.

Alas, this has jump started my fear that the Chinese stimulus would lift oil next.

So long as this trade lasts, AUD will correct.

I still expect another leg higher into year end.