Falling Chinese yuan to drag down Australian dollar

CBA on the RMB at Bloomie calling for material further falls:

So long as the RMB falls so will the AUD. The correlation between the two is now scary:

If CBA is right about those levels for CNY then my 72 cents AUD forecast for the end of this year still looks good.

65 cents next year as the RBA shocks with cuts!

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David Llewellyn-Smith is chief strategist at the MB Fund which is long US equities that will benefit from a falling Australian dollar so he is definitely talking his book (or CBA is!) Below is the performance of the MB Fund since inception:

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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.