Australian dollar thumped to new low

DXY is still consolidating.

But the RBA smacked AUD to a new low.

North Asia was mixed.

Oil is holding on, gold firming up.

Dirt too.

Not miners.

EM yawn.

Junk too.

Yields firmed.

Stocks softened.

Not much new to report beyond the dovening of the RBA.

I expect a weak Q4 inflation figure in late January to trigger the first rate cut in February.

I would definitely be on the dovish side of further cuts in 2025 unless or until the gas cartel injects a whole new round of extreme energy inflation when LNG imports start mid-year.

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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.