Australian dollar universally tumbles as exhaustion sets in

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DXY was up Friday night and still looks very strong:

The Australian dollar tumbled against every cross:

Despite gold taking off:

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Oil too:

But dirt sagged:

Miners were bid:

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EM stocks are stalled:

Junk fell:

Bonds were soft:

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Stocks eked out a gain:

Global data is still so bad that it is being ignored. We remain in the virus Twilight Zone zone where the stasis of shut down economies supported by policy is all that matters and the price of equities benchmarks everything.

There are bullish arguments for the Australian dollar in China leading the recovery, iron ore and our virus success.

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There are bearish arguments for the Australian dollar in Cold War 2.0, mass unemployment, falling house prices and entering Winter.

Neither matters yet. Only this does:

The path of stocks is still the path of the AUD.

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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.