South Pacific peso flogged to another new low

Wednesday, 26 August 2015

One sign that markets are not taking any save by Chinese authorities very seriously, except to the extent that it underlines how much trouble that economy is in, is the Australian dollar which continues to plumb to new lows, last night breaching into the 70s briefly, rallying then selling again:

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I will take that as MB’s 2015 70 cents target as reached. Next year’s 60 cents target looks rock solid and the 45 cent bottom mooted for the cycle low some years ago also looks eminently sensible.

In terms of developing economies we are now making great strides:

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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.