Australian dollar rips into short squeeze
DXY is taking a breather.
AUD is ripping into a short-squeeze.
But it is wearing CNY concrete boots.
Oil is a problem for markets.
Dirt meh.
Miners soggy bounce.
EM likewise.
Junk jump.
Yield dump.
Stocks pump.
The US CPI was rocket fuel, as expected.
The so-called core consumer price index — which excludes food and energy costs — increased 0.2% after rising 0.3% four straight months, Bureau of Labor Statistics figures showed Wednesday.
That marked the first stepdown in the rate in six months. Cheaper hotel stays, a smaller advance in medical care services and relatively tame rent increases helped restrain the December figure.
That's a good print with more disinflation ahead via rents in particular.
There may be enough here for a solid counter-trend rally especially if the leak about Trump's incremental tariff ratchet mechanism plays out.
Some of the excesses for AUD weakness can be worked off.
.jpg)
