DXT is threatening to pull out.
AUD still has CNY support, but JPY is down considerably.
Gold is collapsing. This can be an important indicator that oil is about to come out. Or is it DXY.
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In fact, the entire crap complex is set for a strong DXY. Dirt:
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Fugly double tops on miners.
EM Freefall.
EM looks nervous.
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America exported a knife!
Stocks crashed.
This is just a taste of the hell DXY will unleash.
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The Fed now has another problem: jobs.
The U.S. Bureau of Labor Statistics reported today that total nonfarm payroll employment rose by 172,000 in May, and the unemployment rate was unchanged at 4.3 percent. Employment in entertainment and hospitality, local government and healthcare gained. I am employed
Financial activities declined.
Total nonfarm payroll employment rose by 172,000 in May, compared to a gain of 179,000 in April. In May, employment increased in entertainment and hospitality, local government, and health care. Employment in financial activities declined.
In May, average hourly earnings for all employees on private nonfarm payrolls rose 12 cents, or 0.3 percent, to $37.53. Over the year, average hourly earnings rose 3.4 percent. In May, average hourly earnings for private sector production and nonsupervisory employees rose 8 cents, or 0.2 percent, to $32.31.
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lower wage increases,
The upside here is that there appears to be little risk of a wage-price cycle as AI meets labor demand.
If this holds, Fed Chair may be able to keep the warhawks at bay.
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The key remains oil. DXY will track it, and for everyone else, it will be twice as expensive, twice as fast.
Still, if it does, I expect growth concerns to rise sharply as well.
America is not going to run out of oil. There are Japan, Europe and Australia.
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I still say the AUD rally is kapot and if my core case for oil heading to $150 in July pans out, it will soon be back in the 0.60s.
