The AUD (often seen as the front running “risk related”currency) is most certainly showing strength against a number of its counterparts but? – What’s with that pesky USD? These commodity related currencies have been performing wonderfully against JPY in recent days ( a decent 5 % addition for Kong ) but across the board USD continues to exhibit relative near term strength. Stocks are “blowing off” as suggested – but the USD is hanging on for the ride.
This is not exactly “normal market behavior” (or at least….not for any extended period of time ) so my bells start to ring, the whistle blows, lights start spinning round……………….something’s got to give.
USD testing near term relative highs here “again” today – and stocks clawing higher as well. It certainly warrants consideration.
I for one will continue to push on the long side as I still see USD as extremely overbought and due for decline.