It’s called losing the global currency war (members)

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No doubt the Pasconomical RBA will today be celebrating a little move down in the Aussie as the US warms up to tightening next year. A job well done!

Only one problem, the Australian dollar is falling FAR LESS SWIFTLY that any of our competitor countries. In terms of commodity producers, here’s the USD versus the Aussie (in black), Brazil, Chile and South Africa:

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Notice the widening spread between us and the rest. And versus developed economy competitors Japan, Britain and Canada:

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.