Australian dollar shredded as bears feast

David Llewellyn-Smith

Saturday 26 July 2025

DXY is trying again.

The AUD uptrend is intact.

Lead boots got heavier.

Gold needs more Trump.

Metals flamed out.

EM too.

Junk is bullish.

Yields faded.

Stocks ATH.

The big bear short on CFTC driving price gains reached -81k contracts, which is approaching very bearish terrain.

AUD had a down day, but so long as this big short is intact, price gains are likely to continue.

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.