King dollar is back.
AUD is beheaded by the king.
Lead boots give up.
Oil and gold mark time.
Metlas mania implodes.
Big mininig, big bear intact.
EM flames out.
Junk OK.
Yields firm.
Stocks stall.
The market is just far too short US dollars triggering a short squeeze.
As its economy and assets outperform.
“In our view, a push through the 99.42-99.68 can see the dollar rebound accelerate, as it would start to push the index back into the 2023-2024 trading range and potentially stop discretionary shorts who pressed their trades as the index broke down. EUR/USD took out the 50-day moving average on this leg of dollar strength. We see the 1.12-handle 2024 range highs as the first target zone for EUR/USD weakness” (JPM FX)
If we are going back to fundamentals, the upside is yuge.
And the downside for AUD is equally so.
