Australian dollar flogged by return of the king

David Llewellyn-Smith

Friday 9 May 2025

DXY is back.

AUD is not.

Lead boots are heavy.

Commods says no bueno for growth.

Big miner meh.

EM meh.

Junk a bit better.

Yields won’t budge.

Stocks only go up.

DXY breaking out.

EUR breaking down.

Ordere restored.

Nobody got dollars.

And you’re going to need them if you’re chasing tech stocks again.

It’s a familiar tale. Mechanical bids are lifting risk assets while the real economy is in reverse.

Forex is trading position and Trump trade healines.

A very volatile proposition.

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.