The AUD is sharply higher against the US dollar again this morning, 69.79US cents, just 6pts below the sessions high of 69.85, not quite breaking through the 70c mark. The AUD saw little change against many other currencies, including most of our major trading partners, bar the Yuan which is pegged to the USD.

I like a good conspiracy theory, I don’t have a tin foil hat on, but I do like to look at “theories” and compare outcomes to “theories”. What’s the old saying, “where there’s smoke, there’s fire”. You just need to have a look and see who is warming their feet at the fire. As they say, follow the money.
The “analyst” have been suggesting that the US dollars days as the world reserve currency are numbered. Even if that is the case I’m struggling to see a replacement currency that hasn’t got its own questionable features. Will BRICS get their currency off the ground, possibly, but seeing Russia, China and India all co-operating on this is a big call. The way the EU is going, they are more likely to head the other way, possibly introduce a “carbon coin” the way they are going. Here comes the tin foil hat stuff. What if no one country owned the currency. The reserve bank system is set up in almost every country in the world and continue to push digital. It doesn’t matter what we think of digital, the banks will love it, the governments will love it and if it is introduced “to the benefit of the masses” most people will “love” it. Looking at other examples of when currencies are “updated” we often see the old currency frozen in value, that includes debt, the new currency is worth more and debt is reduced quickly. That’s a carrot that would be hard to pass up at present, debt levels are high.
What will this do to assets, like land and stock (grain, cattle, lint). Unsold commodities may well increase in value, as would assets, and then the debt cycle could start all over again.
Foil hat aside, the grain markets at the present are dead. Producers everywhere are simply selling what they need to produce cash. US values are not moving higher, even as their dollar falls, they must be starting to feel pretty ripped off over there. They are paying the cost of tariffs and not seeing increased values.