Australian dollar vulnerability grows

Monday 5 March 2018

The Australian dollar held up Friday night as the Trump tariff tantrum continued:

But look past your nose and this is a pretty stupid reaction. Australia is probably the biggest loser worldwide to US steel tariffs and any lift US inflation is also USD bullish. Over any time frame longer than a few hours there is no way this is anything other than bearish for the AUD.

Last week’s CFTC data showed sentiment eroded very modestly:

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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.