Australian dollar choked by China

David Llewellyn-Smith

Tuesday 15 October 2024

DXY is up and away:

AUD is getting hosed:

North Asia too as CNY gives way:

Oil and gold are under pressure:

Metals too:

Big miners are still in a downtrend:

EM stocks yawn:

Junk good:

Yields eased:

Stocks to the moon:

A quick on China shows what’s driving AUD weakness. CNH can’t break out:

Markets do not hate the falling yuan the way that they used to, given that US exceptionalism can still drag global growth along.

But it is another sign the stimulus is inadequate, hence AUD is ignoring it.

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.