Australian dollar to the moon and beyond!


DXY was smashed last night:

That triggered AUD ecstasy:

Even the peg moved:

Adding to the joy, oil didn’t move:


Dirt did:

Miners surged:

EM took off:


Junk corroborated:

Yields plunged:

Stocks to the moon!


‘Twas a heavenly US CPI that lit up markets. Below estimates and with more falls ahead as rents cool off (yes, falling rents):


Core services are still a aproblem but there us more deflation to come in housing and wages are coming off too so there is no need to panic even about that.

DXY looks likely to perform a cyclical dump here and with Alboflation at home the AUD looks ready to rocket.

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.