Bubble boys, what you gonna do, when the dollar comes for you?

Wednesday 2 March 2016

Because it is! Australia’s shiny new above-trend bubble GDP figure has torn the roof off the Aussie as it pushes towards 73 US cents and severe over-valuation:

It’s not panic stations yet although we’ve just shot above the 200dma which will give the rally life:

We’ve seen this story before as Australia goes through periodic bouts of better so-called “rebalancing” growth. But on the crosses we can see just how badly it is hurting:

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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.