The US dollar was the worst performer last week while the yen easily led the way as risk aversion set in. It ended a streak of 12 consecutive weekly gains for the Dollar Index.
FX performance vs USD last week
For me, it’s hard to believe the US dollar will continue to underperform when I look at something like the AUD/USD weekly chart. This was a perfect time for a bounce and after a rip up to 0.8900, it almost finished the week flat.
AUDUSD weekly chart
The way the stock market finished on its knees also makes me skeptical that that commodity bloc can hold up.
