AUD/USD longs were the top trade this week
Australian dollar up 1% on the week
The US dollar was the laggard this week even though Treasury yields are at the post-pandemic highs.
The softer CPI report and stringently dovish comments from Powell were headwinds but there wasn't a strong catalyst for dollar weakness and overall equity moves this week were moderate (outside of Asia anyway).
The divergence with NZD is notable here as their on opposite sides of the ledger. CAD is also right in the middle despite the ongoing run in oil.
The AUD chart is an interesting one. It went on a great run after the US election but looked to be retracing two weeks ago. Yet it's turned into a very shallow retracement, at least so far, bouncing off the 55-day moving average.
I'm ambivalent on AUD/USD but last week I wrote about the case for AUD/JPY longs and the picture improved this week with the break above the January highs.