The American madman wants a lower currency, and he’s going to convulse until he gets it.
AUD is off the hook. Way overbought, but this has legs.
CNY and JPY support.
Gold wavered.
Metals too. Maybe frotnrun.
Big mining heaven.
EM rocket.
Junk no bueno.
Curve steepened.
Stocks ATH.
How far and fast can the madman currently fall?
Technicals are at a critical juncture.
But fast approaching doom oversold.
And moves of this size tend to reverse or, at least, fill the gap.
Macro is not supportive of the move as the US growth outlook lifts.
But it’s all about the madman now. How long can he stay so mad that he can destroy the global reserve?
Asking how mad the madman can get is like asking how long I can take heroin.
Ages, but you’ll have to keep taking larger doses for the same hit, and it’ll eventually kill you.
Then again, Trump’s madness is ever creative, so far lasting a lifetime of escalating gambles.
It may be the only certainty left.
AUD up!
