Australian dollar launches golden rocket

David Llewellyn-Smith

Wednesday 7 May 2025

DXY is struggling mightily still.

AUD to the moon!

Lead boots grow wings.

Oil buy the fact.

Metals growth no bueno.

Mining dogs.

EM meh.

Junk hmmm…

A little yield relief.

Stocks flamed out.

Gold has returned to its undollar best.

AUD is gold in slow motion.

Although gold is only about 7% of the terms of trade, its signal of a weak DXY is a solid underpinning for further AUD gains.

Both gold and AUD are undollar assets, unless and until things really turn nasty and them both tend to sell.

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.