DXY is ready to pop but not yet.
AUD is breaking down.
CNY yawn.
Gold and oil yawn.
Metals say Chinese property rescue is no bueno.
Miners too.
EeeiiuuM
Junk was OK, weirdly.
Yields too.
Stocks puke.
US September payrolls didn’t cheer anybody.
Total nonfarm payroll employment edged up by 119,000 in September but has shown little change since April, the U.S. Bureau of Labor Statistics reported today. The unemployment rate, at 4.4 percent, changed little in September. Employment continued to trend up in health care, food services and drinking places, and social assistance. Job losses occurred in transportation and warehousing and in federal government.
…The change in total nonfarm payroll employment for July was revised down by 7,000, from +79,000 to +72,000, and the change for August was revised down by 26,000, from +22,000 to -4,000. With these revisions, employment in July and August combined is 33,000 lower than previously reported.
Too hot for the Fed and too cold for markets.
Moreover, the breakout in Japanese yields is being accompanied by a run on its currency: capital flight, anyone?
If DXY launches, then everything else is going to take it in the team. Everybody is short.
And long EUR.
Which tends to deliver the opposite.
The Fed’s on hold for now. Japan’s yields are turning unruly as the thirty-five-year bond boom unwinds.
DXY is breaking out, and risk plus the AUD are breaking down.
