Australian dollar flies again as euro powers

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The Aussie dollar is ploughing through the mid-76 range today:

There are a range of reasons with iron ore ramping again and the good run of local data. But the major trigger is a weak USD which is, in turn, falling thanks to a break out euro:

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There is no immediate end in sight for this dynamic. As said over the last few weeks, as markets readjust to rising real interest rates on both sides of the Atlantic, the eurozone has a lot more easing priced into its markets that must be unwound than does the US.

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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.