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Not much need to go into it in detail but here is what happened to the Australian dollar overnight:
The US dollar also weakened but the crosses show the broad based strength:
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This doesn’t change the outlook for a falling dollar given it’s fate will ultimately be sealed by a weak economy, not least because the dollar isn’t falling as it should and therefore prevents any hope of tradable recovery.
But bleeding out your tradable sector to “make room” for a property bubble is still a pretty low point in the history of macro management.
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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