Global Macro

DXY fell sharply Friday as Trump tax headbutting goes on: AUD was even weaker against DMs as the RBA paralysis sinks in: Against EMs, AUD was mixed: Gold got smacked, oddly: Brent was firm: Despite the jump in US oil production and the rig count from 729 to 738.

By Leith van Onselen On the sidelines of the APEC meeting in Da Nang, Vietnam, eleven of the twelve original members of the Trans-Pacific Partnership (TPP) trade agreement agreed to negotiate a new deal without the United States, and noted that “core elements” of the pact had already been reached.

Cross-posted from The Conversation: Negotiators from 11 countries have been racing to resurrect the near-dead Trans-Pacific Partnership Agreement before the Asia-Pacific Economic Cooperation (APEC) summit this weekend.

I’ve missed this update all week owing to flu.

Cross-posted from The Conversation: The release of more than 13 million financial and tax documents known as the “Paradise Papers” show that the Panama Papers last year and LuxLeaks in 2014 were just the tip of the tax avoidance iceberg.

Cross-posted from The Conversation: The so-called Paradise Papers may sound familiar – leaked documents from a law firm that specialises in offshore services reveal how the global elite avoids paying taxes.

Cross-posted from The Conversation: The Chicago Mercantile Exchange will soon begin trading Bitcoin derivatives (futures contracts), signalling the cryptocurrency is now a mainstream asset class.

By Leith van Onselen Late last week, Canada’s immigration minister, Ahmed Hussen, announced a big increase in Canada’s immigration program, with some one million migrants to be let in over the next three years, with a 300,000 migrant intake now considered the “new normal”.

DXY was firm last night: AUD was strong against DMs: And EMs: Gold was stable: Brent too: Base metals fell: Big miners roared again: EM stocks fell: High yield yawned: The US curve flattened again: European yields fell: Stocks held on: There are two things going on here.

From Deutsche: The Future of Money Part 1 – The Start of the End of Fiat Money?

DXY was firm last night: So was AUD, largely just tracking a big bounce in the NZD after good jobs data: EM currencies were strong: Gold firm: Brent fell: Base metals just won’t quit: Big miners roared: EM stocks hit new highs: High yield fell: US short end yields jumped.

By Leith van Onselen Economists from the New Zealand Institute of Economic Research (NZIER) are urging the inclusion of a nominal GDP growth target in the Government’s upcoming review of the Reserve Bank Act.

DXY roared Friday night and the future is up: AUD crashed but rebounded on news that Jerome Powell is now Fed favourite.

DXY has delivered on the promise of its bullish inverse head and shoulders chart.

DXY fell a little last night as it waits for Trump tax rocket juice: But that could not save the AUD which plunged against USD And EUR: And EMs: Gold was soft: Brent firm: Base metals still smokin’ the crack: Big miners not!

DXY spent the night trying and failing to break out: AUD was soft against DMs: But strong against EMs.

Via Ray Dalio of Bridegwater today: Our Biggest Economic, Social, and Political Issue The Two Economies: The Top 40% and the Bottom 60% To understand what’s going on in “the economy,” it is a serious mistake to look at average statistics.