# Australian dollar to succumb to declining yield gap, warns Mark Farrington

> Currency hedge fund manager Mark Farrington says the Australian dollar should decline against the US dollar as its yield advantage narrows. He expects the US dollar bull run to resume as the Federal Reserve keeps raising rates faster than other central banks.

- Date: 2018-01-31 · published 2018-01-31T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/67227-australian-dollar-to-succumb-to-declining-yield-gap-warns-mark-farrington
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

This is a forecast opinion rather than a new event. A firmer US dollar would generally weigh on dollar-priced commodities, though the effect on feed markets would be modest.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-12-10 | [Australian dollar to fall on strong US jobs - MacroBusiness](https://feedsoft.ai/events/32982-australian-dollar-to-fall-on-strong-us-jobs-macrobusiness.md) | -0.8% | -0.9% |
| DXY | 2022-03-31 | [Searing hot Australian dollar begins to cool - MacroBusiness](https://feedsoft.ai/events/42516-searing-hot-australian-dollar-begins-to-cool-macrobusiness.md) | +0.8% | +3.8% |
| DXY | 2022-12-27 | [USD to AUD Forecast: Why The US Dollar Is Strengthening Against The Australian Dollar](https://feedsoft.ai/events/38485-usd-to-aud-forecast-why-the-us-dollar-is-strengthening-against-the-australian.md) | +0.1% | -2.5% |
| DXY | 2018-10-03 | [Australian dollar slammed after U.S. bond yields surge higher](https://feedsoft.ai/events/62788-australian-dollar-slammed-after-u-s-bond-yields-surge-higher.md) | +0.6% | +2.3% |
| DXY | 2026-08-28 | [Australian Dollar retreats as Warsh’s hawkish tone lifts US Dollar](https://feedsoft.ai/events/18151-australian-dollar-retreats-as-warsh-s-hawkish-tone-lifts-us-dollar.md) | -0.2% | +1.7% |

## Sources

- afr.com: https://www.afr.com/companies/financial-services/australian-dollar-to-succumb-to-declining-yield-gap-20180131-h0re77

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.