The US trading week started with some fireworks as the dollar surged across the board. The gains were particularly strong against the commodity currencies, which had been on a strong run in the past two weeks.
The dollar rally flushed some stops but was arrested quickly and has bounced back solidly. That rebound has trimmed the AUD/USD decline to just 20 pips, which isn't much of a retracement after a 350-pip one-way move.
Across a handful of markets today, we've tested some extremes but have backed off. It's a big week of economic data that's building up to PCE on Thursday and non-farm payrolls on Friday. We also get the turn of the calendar, which could be an important factor.
