DXY is down, down.
AUD is up and away.
CNY tailwind.
Gold tailwind.
Metals tailwind.
Miners tailwind.
EM not so much.
Junk looks worried.
Yields fell.
Stocks firmed.
The ADP survey in the US was weak.
“Hiring has been choppy of late as employers weather cautious consumers and an uncertain macroeconomic environment,” said Dr. Nela Richardson, chief economist, ADP. “And while November’s slowdown was broad-based, it was led by a pullback among small businesses.”
There is no NFP this Friday. It is December 16. US macro surprises are suddenly nasty.
Rate cut a go-go. More next year.
The jury is in on the rebounding DXY, and it is a resounding rejection.
This is a useful counterweight to worries about Japanese yields. Yen won’t fall if DXY does. This should give the BoJ breathing space to hike without upsetting markets too much.
AUD to run higher.
