Advertisement
From MB alumnus Greg McKenna:
There have been a lot of questions around the Australian dollar’s persistence and strength above 70 cents as commodity markets crashed recently.
Many theories have been proffered. But for the most part the fact that many pundits have been surprised by the move is in itself a potential cause of the move. That’s because this surprise reflects market positioning which had baked the move to 65 cents in coming months into the cake.
The full text of this article is available to MacroBusiness subscribers
Cancel at any time through our billing provider, Stripe
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.
Advertisement