DXY is turning into a wrecking ball:
AUD blood in the streets:
North Asia has got nuthin’:
Gold is wildly overshot:
Commods fighting the power:
Miners not:
Xi rally in trouble:
Junk warning worked a treat:
Jackknife!
Stocks finally woke up:
The DXY wrecking ball has multiple drivers. BofA:
USD has risen significantly in October, in-step with IRDs, predominantly driven by US data surprises and relative CB pricing.
US election has dominated the narrative, but excesspolitical risk premia in the USD iselusive. FX positioning still light.
While some USD pullback is to be expected, there is room for further upside as Nov 5th nears, amid still asymmetric risks.
Hilariously, AUD is hugely overbought after the Chinese yawnulus just as the world turns to DXY exceptionalism.
Trump + Xi fail + RBA cuts = AUD blood in the streets.
