Australian dollar technicals are fugly

Thursday, 1 August 2019

The US dollar index is running riot in Asia after it broke out of its neutral symmetrical triangle on the Fed disappointment:

There is room to run on this in terms of market positioning. The big long of US tax cuts has turned small short in recent months as the Fed mooted easing:

Further fuel is coming from the EUR which has broken down and appears headed for a retest of its 2017 low as the ECB piles in:

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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.