No doubt the Pasconomical RBA will today be celebrating a little move down in the Aussie as the US warms up to tightening next year. A job well done!
Only one problem, the Australian dollar is falling FAR LESS SWIFTLY that any of our competitor countries. In terms of commodity producers, here’s the USD versus the Aussie (in black), Brazil, Chile and South Africa:
Notice the widening spread between us and the rest. And versus developed economy competitors Japan, Britain and Canada:
A little better on the euro but now turned for the worse and buggered against the others. It is exactly the same pattern against the Chinese yuan of course.
We have traded resource driven Dutch disease for housing driven Dutch disease and are giving away our productive economy, including commodities, just as fast as we are able.
Jolly good work, chaps, what!