Australian dollar flattened by runaway US economy

David Llewellyn-Smith

Thursday 6 July 2023

DXY was soft last night:

But AUD broke anyway:

Oil and gold eased:

As the Crap Complex was put to the sword. Dirt:

Miners:

EM:

Junk:

The culprit was jackknifing rates:

Which slammed European stocks and hit the US:

Reality has begun to dawn on markets. Inflation is not beaten and the AI bubble wealth effect drives ongoing economic activity. The Services ISM accelerated:

Activity is especially strong in leisure activities where jobs are booming. ADP tore the roof off:

The Fed has to pop the AI bubble to control inflation.

This will get messy for 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.