See the latest Australian dollar analysis here:
DXY was up again Friday night and is signaling a rise in risk:
The Australian dollar is starting to fall against all major DMs, more risk-off signal:
It’s also falling against EMs:
Gold roared back to its break out line:
Oil is hanging in there. I’m turning bearish:
Dirt was OK:
Miners were hit:
EM stocks are holding on:
Junk has slipped:
Bonds are bid:
Stocks mostly fell:
The SPX/AUD correlation is holding:
It’s an interesting mix of price signals. Forex, bonds and gold are clearly beginning to price rising risk, probably associated with a powerful second wave of virus infections. Equities and commodities are still ignoring it but for how long?
It appears increasingly likely that the AUD has topped out in its bear market rally ride.