Aussie, Aussie, Aussie dollar to the moon!

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As suggested in my last five drivers post on the Australian dollar, we were shaping for a breakout to the upside. Let’s update the model today and see how far we might have to run.

The five drivers are:

  • interest rate differentials;
  • global and Australian growth (more recently this has become more nuanced for the Aussie to be more about Chinese growth);
  • investor sentiment and technicals; and
  • the US dollar

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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.