The US dollar is bid right across the board. Even with the S&P 500 rallying 1% AUD/USD is also at a session low to 0.8042.
The key level to watch is 0.8035, which was the low on Monday and also the lowest since 2009. On a weekly/daily closing basis, the 2010 low of 0.8067 is key.
The argument for buying the Australian dollar is yield. Australian 10-years pay 2.68%, which is 70 bps better than Treasuries and the yield advantage improves as you move closer to the front end. The thing is, to go along with it, there needs to be some kind of positive catalyst.
Overall, if you’re dying to find a place to sell the US dollar, this might be it.
