US markets are closed for the celebration of its Independence Day. There are four developments to note today. 1. FX Price Action: The US dollar is little changed against most of the major currencies. The notable exception is the Australian dollar. It has been sold to new six-year lows to near $0.7500. Recall that is the level that RBA Governor Stevens previously identified as reasonable. This illustrates one of the problems of nominal and bilateral exchange rate targets. The continued negative terms of trade shock (e.g. iron ore prices have renewed their decline) and knock-on impact from poor Chinese developments ... (full story)