DXY slumped post-Greenland deal. The Davos speech of the American madman was an obnoxious mess about “Iceland”. Hard to see how DXY can flourish as POTUS loses his mind.
AUD had a multi-sigma day to remember after the strong jobs numbers.
Without CNY help.
But with gold’s help. No Greenland dump for gold. This is indicative of blowoff dynamics.
Metals meh.
Miners meh.
EM moonshot.
Junk meh.
Yields meh.
Stocks more constructive.
On a day in which gold ripped, POTUS tripped, and jobs flipped, AUD melted up to my target.
At this stage, I am more tempted to raise it than turn tail.
Gold is falling much faster than iron ore, and the global cycle appears to be turning towards stronger growth.
DXY has become a proxy for the fading mind of an American madman, and that is not going to get better.
The US dollar smile is nowhere yet in sight as yields begin to turn, either.
It looks like AUD is going higher, through 70 cents, and more.
