AUD/USD jumped to retest the 0.8338 high put in earlier this week and trades not far from that level at writing. A broadly weaker dollar is dragging up commodity prices and fueling interest in commodity currencies which helps further weaken the dollar…and around and around we go. It is interesting to note that stocks have not participated in today’s rebound at all, an oddity, a warning sign or a breakdown in recent correlations; too soon to tell which, I’m afraid.
I’d have more respect for the move if it weren’t taking place on a Friday afternoon which happens to coincide with month-end.
0.8350 barriers are rumored and may help slow the AUD advance near-term.
