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The Pacific peso is back and is falling like a stone, hitting fresh three year lows just above 87.5 cents (though it has since bounced):
This appears to be driven by the approach of Chinese data today, which you might bet will come in at consensus (for some reason!). That would probably see a covering rally.
Looking to the Commitment of Traders report we can see the large and small speculators that control the market are well short but there’s still room for more:
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I’ll be providing a longer 2014 forecast tomorrow.
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.
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