A universally stinky Australian dollar (updated)

Advertisement
Alan Kohler may have joined the elite cheer squad of Australian dollar strength this morning but its all looking in vain at the moment. The Australian dollar looks weak and weakening to me. Today there’s no surprise about why with China’s property bubble going mainstream and the weekend’s property curbs whacking rebar futures big, as well as some average local data:

As a result, ye auld battler is being singled out for a hammering:

Against the USD, we just busted through the support level in place since the iron ore low last year:

I reckon we’re going to take out parity on this move.

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.