Pump relief as Australian dollar rallies

Wednesday 4 September 2013

The Australian dollar continued its powerhouse performance last night up another cent of so as markets relaxed about taper prospects for the time being:

Oil also fell 1% or so as markets relax about the idea of bombing Syria. Not sure why:

Giving us a good fall in the Australian dollar oil price, which is still firmly in its new elevated range but has returned from the moon:

New highs for prices ahead but only briefly if the hope holds. Further oil spikes on Syria still look very possible to me and how high can the Aussie go?

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.