Australian dollar bulls charge back

DXY no bueno.

AUD bueno.

Lead boots going nowhere.

Gold bueno.

Metals no bueno.

Miners no bueno.

EM no bueno.

Junk no bueno.

Yields very no bueno.

Stocks no bueno.

Here’s the issue. The Trump administration has no credibility with markets after the tariff debacle.

Now it is going to unleash its tax cut bill and put more pressure on treasury issuance:

Even as foreign capital exits.

DXY will not just fall, it will plunge, and yields keep rising at the same time.

It’s hard to imagine Wall Street seeking to break Trump’s tax cut bill, as it already did his tariffs, but the American lira is back regardless.

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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.