Australian banks Australian LNG Australian Shares Commodities Gold Iron ore price

USD rages, CNY sinks, dirt defies history

Friday 18 November 2016

The USD rampage continues across Asia. Here’s the long term chart to give a sense of far it could run:

CNY has sunk to new lows:

This continues the bizarre circumstance for commodities when a raging USD creates a massive headwind but a falling CNY creates speculative buying in China to hedge the currency drop. I know which force will win in the end and it is not commodity prices:

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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.