Australian dollar sinks under the pressure

David Llewellyn-Smith

Saturday 22 June 2024

DXY looks ready to test the last two highs:

AUD was soft:

Oil and gold fell:

Metals too:

Plus miners and EM:

Junk is bulling up again. Good for stocks:

Yields were soft:

Stocks eased:

It was PMI day in the Northern Hemsiphere and that largely determined the direction of forex after European PMIs missed:

And the US stayed strong:

In the forex game of relative growth performances, European growth must get moving for DXY to fall.

Unless or until that point, DXY will remain dominant and AUD will suffer.

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.