Dollar broke out of a bullish flag today, tgt price around 24.40 on uup but with the power of this move, I can see it going to 24.80 or so or even up to 25 before profit taking comes in. Long-term dollar could get back to 27 but short-term looks like 25 should contain it if it gets to 25 before there is profit taking and consolidation. Long-term the dollar may have made significant bottom here and it may surprise some people for the next few yrs with it's strength, imo.
If china has huge inflation won't they revalue the yuan and reset their commodity costs? We will get inflation from the rise in chinese goods, and we buy less, but I see this as dollar negative too, but in a few months, not today.
I think that this is just the normal ebb and flow. Oil and commodities are weakening due to China and the carry trade is just unwinding a little. In a week or two, we go the other way. Ultimately, we go down.