Australian dollar joins commodity burst

DXY is firm.

AUD too.

Not lead boots.

Commods ripped.

Miners not so much.

EM yawn.

Sooner or later, junk will either rally or kill the wider bull.

Curve steepened.

Stocks have another crack ATH.

I’m not sure why the sudden surge in commodities.

Lifting global PMIs, for the most part. With some tariff hedging thrown in.

Perhaps it’s part of the gloss coming off American exceptionalism as well and may signal DXY falls ahead.

Anyhow, it is a bullish development for AUD while it lasts, and I still see upside short term.

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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.