Australian dollar must fall much further

Friday, 27 February 2015

The Aussie was hit hard last night and is trading under 78 cents again this morning. The weakness was a combination of yesterday’s terrible capex outlook and a rampant US dollar fired up by signs of US wages growth.

That lent the peso weakness against the crosses as well. Lot’s of healthy red on the boards:

Versus developed economy competitors the picture is improving with downtrends against the US dollar and Euro:

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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.