Australian dollar world's most loved currency

DXY sagged as stocks came off.

AUD up. The trend is intact.

Lead boots give you wings.

Is gold setting up for another run?

Metals growth no bueno.

Miners meh.

EM meh.

Junk OK.

Yield relief.

Stocks BTFD.

When the risk bid comes, AUD is the world’s most loved currency.

This is the complete opposite to history because the risk bid is so attached to the need for US dollars to buy or sell US stocks.

It is most inconvenient for Australians holding foreign stocks. Their hedge is broken on the bad days and their accelerator is broken on the good.

Perhaps this helps explain why some yielding Australian stocks are the most expensive in the world at the moment.

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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.

Australian dollar world’s most loved currency