China’s capture of a US Navy Drone showed that the US dollar is not infallible. NAB’s Ray Attrill explains to Phil Dobbie that it highlights how significant geopolitical news will be on the markets in 2017. It could be a case of two steps forward, one step back. We also look ahead to today’s mid-year economic forecast and ask what impact a credit rating downgrade could have on the Aussie economy. And will Janet Yellen be a little more dovish when she talks about the US jobs market later today?