Australian dollar tumbles into yuan crater

DXY is back. Consolidation over!

AUD is barely clinging to the cliff’s edge.

As CNY lets go. JPY will roll next.

Gold and oil despair.

Dirt too.

Miners meh.

EM yawn.

Junk isn’t happy.

As the curve re-inverts.

Stocks to the fricken’.

Whether or not the DXY consolidation is done, I will leave it to you.

What matters more is that CNY broke lower yesterday and is fast approaching a post-GFC low.

If Beijing is warming into the Trump tariff war using CNY, which seems inevitable, then DXY has no ceiling.

And AUD has no bottom.

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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.