Australian dollar ramps through 77 cents

David Llewellyn-Smith

Thursday 13 July 2017

Aussie dollar is on fire this afternoon, ramping through 77 cents:

The drivers remain:

the commodity pain trade;
a weak USD and strong EUR as the former has too much tightening priced and latter not enough.

These could run right through Q3.

That technical pattern is a bullish ascending triangle. If the price can challenge 78 cents there’ll be an huge pile of stops there. If it breaks it’ll be blast off.

Brilliant short if it comes moving into a slowing China in Q4.

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.