Australian dollar roars with everything rally

David Llewellyn-Smith

Tuesday 21 November 2023

The great reflator, DXY, is falling:

AUD broke out:

The peg has broken higher:

Oil up, not gold:

EM up:

Dirt up:

Junk up:

Yields down:

Stocks up:

US leading indicators are terrible:

For now, that makes everybody happy as yields fall.

But, at some point, the market will have to wonder if growth will stall and a glowing earnings recovery outlook miss big.

Until or unless then, it is DXY down and AUD up.

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.