Australian dollar joins European Union

David Llewellyn-Smith

Wednesday 5 March 2025

DXY is falling. EUR rising.

AUD follows the latter.

Held back by CNY.

Surely time’s up for oil.

Commods meh.

Miners meh.

EM meh.

If spread widen, look out below.

Yields held on.

Stocks fluctuated.

The market is well short AUD again. Options are not the main driver of value, but they are an indicator.

And the broader market is still long DXY.

With this kind of positioning, I can’t see AUD going much lower against DXY in the near term.

We might fall against EUR, though.

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.