Australian dollar surges as yields fall

Wednesday, 7 April 2021

DXY took a hammering last night as US yields fell back from the recent charge higher. We saw all of the usual resulted with EM, commodities and Australian dollar up strongly. I see this as a counter-trend rally. To the charts! DXY vs EUR:

The Australian dollar lifted away from the neckline of its perilous head-and-shoulders top but fell versus other EMs:

Gold suddenly has a potential double-bottom and oil is still at risk:

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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.