Australian dollar pukes on RBA

DXY is back on strong second-tier data.

AUD puked the RBA.

Lead boots sinking once more.

Gold is in a crazy blowoff.

Copper popper.

Miners yawn.

EM Deepsuckered.

Junk maybe.

Yields up.

Stocks firm.

Pretty boring action. The AUD is not listening to the relentlessly stupid RBA hawks.

Why would it be when their forecasting is so bad?

I expect more upside yet as the AUD chops through its impressive short.

The global recovery meme is gathering pace.

Later comes a rollover as markets realise that China is still in a depression and the RBA will be forced to rain rate cuts as iron ore and the terms of trade rout gather pace, and ever-stronger immigration destroys wage growth.

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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.