Next downdraft for Aussie dollar: Italy

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The FT has the story:

Italy’s leading populist parties are within striking distance of forming a government in the eurozone’s third-largest economy after reaching tentative agreement on a common platform — but not on a choice of prime minister.

Luigi Di Maio, the leader of the anti-establishment Five Star Movement, and Matteo Salvini, the head of the far-right League, met each other with key aides in Milan on Saturday and Sunday to thrash out details of a coalition agreement that could propel them to power in the coming days.

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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.