See the latest Australian dollar analysis here:
DXY was up Friday night and still looks very strong:
The Australian dollar tumbled against every cross:
Despite gold taking off:
But dirt sagged:
Miners were bid:
EM stocks are stalled:
Bonds were soft:
Stocks eked out a gain:
Global data is still so bad that it is being ignored. We remain in the virus Twilight Zone zone where the stasis of shut down economies supported by policy is all that matters and the price of equities benchmarks everything.
There are bullish arguments for the Australian dollar in China leading the recovery, iron ore and our virus success.
There are bearish arguments for the Australian dollar in Cold War 2.0, mass unemployment, falling house prices and entering Winter.
Neither matters yet. Only this does:
The path of stocks is still the path of the AUD.