Australian dollar rides American idiot premium

David Llewellyn-Smith

Thursday 29 May 2025

DXY is hanging on again.

AUD is still grinding up but failing to launch

Leads boots are climbing

Gold and oil shaky.

Metals no bueno.

EM meh.

Junk all clear.

Yields eased.

Stocks eased.

It is a strange new world in which both DXY and AUD are heavily shorted so both may climb at any instant.

Arguably, it is DXY that the most mispriced.

Good economy.

Firm inflation.

Strong assets.

There is a very large Trump idiot discount in the DXY. A few weeks of sense could test it.

And the AUD uptrend.

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.