Australian dollar crushed on the crosses but not enough

Monday, 24 August 2015

The Aussie battler is being pounded on the crosses today, especially against other developed markets:

That is super news for Australia’s booming manufacturing sector. However, against our commodity competitors we’re still losing ground:

The crisis is based in emerging markets so we can’t catch down fast enough with our dumbarse central bank still behind the curve on rate cuts and macroprudential tightening. And so, as the mining and energy market share battles rage and the shakeout gathers pace, we lose.

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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.