USD Too Reflated By Now

The report questions the sustainability of the recent USD rally, highlighting signs of over-reflation. It also reviews mixed economic signals from Australia and the ongoing pressure on the JPY near intervention levels.

Key Takeaways

• 1.The USD rally is showing signs of exhaustion and may be over-reflated given recent trends in oil prices and relative US rates.
• 2.Australian labor market and consumption data are sending mixed signals, with recent volatility making headline readings unreliable indicators of health.
• 3.The JPY remains under pressure as it approaches the 162 level, a critical threshold for Japanese government intervention.

Table of Contents

• USD: too reflated by now?
• Asia overnight
• AUD: more mixed signals
• JPY: still struggling
• Introducing RMA!
• Open trade recommendations
• Key events

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