Australian dollar sinks with yield spread

Wednesday 10 May 2017

The Aussie dollar correction continues, sinking as low a 73.3 cents last night. It is also sinking fast against the euro, versus the yen it is trying:

Softening commodity prices and waning sentiment on China are playing a role, as is the declining yield spread to the US, which hit a new 17 year low overnight at 36bps on the two year:

I think we are going to invert later this year.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

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.