Commodity currencies rebound
This is a strange market. The meme stocks are all anyone can talk about but the broader market is a difficult puzzle to put together right now.
Equities have been struggling but there are signs of liquidation. At the same time, the performance of big-cap companies struggling after good earnings isn't a story about funds liquidating so that's a red flag.
Another one is bonds, where Treasury yields have broken back lower. At some point that's a positive for risk appetite because of cheap money. Still, there's money flooding into safety and that's problematic for commodity currencies.
But then you look at the price action in AUD, CAD and NZD and it's showing resilience. They were strong yesterday and bounced back from today's rout. AUD/USD hit a three week low but has rebounded.
I tend to lean towards caution here because there are so many moving parts right now. If you're not a bit off-balance here, then you're not paying attention.
And it's about to get even tougher with the FOMC an hour away.