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There’s no point repeating my full five drivers report on the Australian dollar today given little has changed. You can read it here. I wish only to add one observation on the last 24 hours of action.
Without any push for the RBA or Fed (if anything the pressure has been the reverse) or a rising US dollar(it was down too) the Aussie has taken a hammering, largely on yesterday’s disgusting data. The crosses tells the tale with widespread Aussie revulsion:
The last year has rarely seen this particular event unless associated with the iron ore price. The technicals are bearish, too, with a neat descending triangle formation:
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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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