Australian dollar plunges into 61s

DXY is still poised for higher.

AUD is now trading in the 61s.

CNY was smashed by deflation.

Gold is marking time. Oil has lost its mojo.

Copper pop!

Miner not!

EM cactus.

Junk is weighing everything down.

As the yield bear steepening continues.

Stocks were shut.

Check this out.

The Chinese long-bond yield is in freefall as deflation embeds. This is pressuring CNY which, in turn, is pressuring AUD.

And note, this is during stimulus, tariff front-running and a decent global economy.

What happens here when the tariffs drop, front-running turns demand air pocket, stimulus is insufficient, and the global economy is rocked?

Lower CGB yields. Lower CNY. Lower AUD.

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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.