The commodity supply overhang has not disappeared

I still feel the $A should be lower than it is at present. Holding up the $A of late has been a more dovish than expected Federal Reserve, but with the US labour market still firm and early signs of a list in US inflation, it seems only a matter of time before the US lifts interest rates again. At the same time, commodity market fundamentals have not changed, with a supply overhang still likely to weigh heavily on prices.

David Bassanese
Chief Economist

Author, columnist, investment strategist and macro-economist. Previous roles at Federal Treasury, OECD, Macquarie Bank and AFR. I develop economic insights and portfolio construction strategies for BetaShares' retail and adviser clients.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.