Australian dollar where robots fear to tread

David Llewellyn-Smith

Sunday 16 April 2023

DXY rebounded on support Friday night. EUR sank:

AUD was bashed back into shape:

Sideways for longer for commods?

Miners fell:

EM yawn:

Junk snooze:

Stocks are tractor beaming yields higher. Trouble for the former:

Already:

The DXY rebound has support in a very extended DXY bear market. BofA on very long DXY CTAs:

If we get material bearish data or yields rise again this week then risk is going to struggle and the robots sell AUD.

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.