Australian dollar pukes to 2021 low

Friday 2 July 2021

The forex markets is on the move as we approach the BLS jobs report Friday night (our time). A good report and I expect it will break out, driving the entire relation trade into retreat. A weak report will offer respite. DXY is up and away off its broad double-bottom. EUR is the reverse with a big double-top:

The Australian dollar was smashed to its 2021 low and is getting hammered versus a weak EUR as well. A bad sign:

Gold and oil survived:

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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.