The Aussie was hit again overnight and is trading in the mid 76s this morning. The weakness was very broad based with a hammering on the crosses:
That tells us the hit was local. And so it should have been. Yesterday’s capex figures were disastrous and signal many more rate cuts ahead. In that context, the falls in the Aussie were far too small. What other economy on earth is currently facing a 3-4% crash in investment? Hint: none.
Markets are basically playing chicken with Australia. They are not going to give us an appropriately priced currency unless we take it, as we know, largely owing largely to the printing shenanigans of every other central bank. Former chairsatan at the Federal Reserve Ben Bernanke offers just that advice at the AFR today
