Australian dollar rides the golden bull

DXY was down last night as EUR popped:

The Australian dollar caught the bid again:

As gold went wow:

WTI is pressing higher but Brent is stuck fast:

Metals MOAR:

Big miners were soft:

EMs stocks pushed for breakout:

With junk:

As US yields crumbled:

US stocks piled it on. Europe is crushed by EUR (hello ASX):

The only chart that matters kept on keeping on:

It is fair to say that the gold bid is also playing a part in AUD strength given it is 10% of the terms of trade. However, the AUD is not fully riding the gold bull. It more has it on a stretched leash:

Which boosts the case for local gold mining equities.

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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.