DXY to the moon:
AUD flushed:
Oil held up as Putin asked OPEC to fund his war with output cuts:
Base metals still in big trouble:
Big miners (NYSE:RIO) survived with iron ore:
EM (NYSE:EEM) flushed:
Junk (NYSE:HYG) flushed:
Treasuries flushed:
Stocks cling desperately to the cliff’s edge:
And the key chart, CNY/USD, was flushed to perhaps the most significant chart support level in modern Australian economic history:
For if CNY breaks through this level decisively then all hell is going to break loose in markets as it confirms that:
- China is going ex-growth as its property market adjusts structurally lower;
- China has no intention to rebalance its economy unleashing all kinds of trade war blowback;
- EM economies are now in direct competition with the largest trade gorilla ever landed on their shores;
- DXY has not topped out and EM economies will also see capital fleeing their shores;
- any and all EMs are at risk of imminent external crisis;
- stock prices are still too high;
- and, commodity prices are going much lower right along with the AUD.
The good news is, it will crush global inflation, which markets will understand in due course.