# Australian dollar hollowed out as yield spread keeps crashing - MacroBusiness

> The two-year Australia-US yield spread narrowed to 45 basis points, its tightest since April 2001, reducing carry-trade demand for the Aussie dollar. The currency is tracking iron ore prices closely.

- Date: 2017-03-28 · published 2017-03-28T12:00:00.000Z
- Category: macro · region Australia · magnitude low
- Page: https://feedsoft.ai/events/72250-australian-dollar-hollowed-out-as-yield-spread-keeps-crashing-macrobusiness
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md), [Barley](https://feedsoft.ai/c/BARLEY.md)

## Why it matters

A weaker Aussie dollar tends to make Australian grain and barley exports cheaper, while iron-ore-linked currency moves reflect broader commodity sentiment.

## Read by commodity

- AUDUSD: bearish ▼
- BARLEY: neutral

## Sources

- macrobusiness.com.au: https://www.macrobusiness.com.au/2017/03/australian-dollar-hollowed-yield-spread-keeps-crashing/

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