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The Aussie is under heavy selling pressure today as it becomes apparent to markets that the Aitken iron ore crash is far from over:
Only 30 pips from the break and then onto 80 cents, followed by 60 cents in the subsequent 18 months as the rate cuts flow:
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And finally, full circle for the mining boom, under 50 cents in the next global shock. One really does wonder why any investor, local or international, would buy Australian right now.
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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