Down goes AUD/USD:
The 10 year yield spread inverted for the first time in twenty years:
All durations are now deepening negative:
As the Australian curve steepens:
But not as fast as the US curve (in the last month):
Finally some sense in markets reflecting real growth prospects. Three or four US rate hikes are coming this year, none in Australia.
Assuming the terms of trade roll over later this year then the Aussie will sink like a stone.
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David Llewellyn-Smith is Chief Strategist at the Macrobusiness Fund which is currently overweight international stocks that will benefit from a falling AUD so he is definitely talking his book!
The information on this blog contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance. Damien Klassen is an authorised representative of Nucleus Wealth Management, a Corporate Authorised Representative of Integrity Private Wealth Pty Ltd, AFSL 436298.
