Australian Dollar Australian interest rates

AUD pressure builds as US-Australia yield spreads turn red

Wednesday, 11 August 2021

The bond yield back-up of the last few days is starting to add some pressure to forex markets. US yields have been running higher since last week super jobs report:

But Australia is being left behind as China slows, commodities roll over and NSW sinks deeper into Delta crisis:

For the last week, the US curve has bull steepened while the Australian curve has bear flattened as we plunge into recession:

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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.