DXY is breaking down with inflation:
![](https://d70-invdn-com.investing.com/content/e3846b2b9081455ba65b32e7b2767878.png)
AUD fell anyway:
![](https://d70-invdn-com.investing.com/content/15d59bb03c8ef79b5b1adf124b75e856.png)
North Asia is mixed:
![](https://d70-invdn-com.investing.com/content/ad34c96746ea9f4966e92dc2f80a77d8.png)
Oil and gold soft:
![](https://d70-invdn-com.investing.com/content/323d75174b2e6cbca56c7baef9e312a6.png)
Metals too:
![](https://d70-invdn-com.investing.com/content/1281eebced95d8100e440186e58a678a.png)
Miners have have fallen down the bottomless shaft:
![](https://d70-invdn-com.investing.com/content/675de8393853033d51d3ff2f008fb633.png)
EM meh:
![](https://d70-invdn-com.investing.com/content/75b795fea95baf36380ee2e0f9985c02.png)
Junk is back:
![](https://d70-invdn-com.investing.com/content/a9b735d15d5cf04028ffcc37fadd104f.png)
As yields confirm US inflation is beaten:
![](https://d70-invdn-com.investing.com/content/b18dfbae13bec7fb9513cf4c6a018706.png)
Stocks are jumpy:
![](https://d70-invdn-com.investing.com/content/160de44ed003aa5ce06f6c8ab4659c78.png)
US inflation is beaten. Goldman:
July core CPI rose 0.17% month-over-month, roughly in line with expectations.
The composition was mixed, as large declines in the volatile used cars and airfares components were offset by above-trend increases in the car insurance and rent components.
Non-housing services prices increased 0.21%.
Based on details of the CPI and PPI reports, we estimate that the core PCE price index rose 0.14% in July.
![](https://d70-invdn-com.investing.com/content/bb7de880d8d6688caca6b5512b9f5a49.png)
With OER set to fall much further, the Fed has won, and rate cuts will begin in September. I expect 25bps in every meeting into next year.
This is short-term bearish DXY but AUD fell anyway. I can only put that down the terrible Chinese credit data and the big break lower in iron ore.
The Aussie terms of trade are a major input in the currency and the future is bleak:
![](https://d70-invdn-com.investing.com/content/e292d7ecce861e5888410e0e312be711.png)
I’m still selling AUD rallies.