BULL WILL TAKE OVER AUD/USDI’d expect the US dollar to break down as stock market bulls rush to put their greenbacks to work.
Instead, the US Dollar Index TVC:DXY is holding steady. Dollar-yen is refusing to roll over.
And risk-on commodity currencies – the Australian, Canadian, and New Zealand dollars – are failing to trigger buy signals.
Stock market bulls don’t seem to care about the lack of risk-on signals from global currencies.
As long as that’s the case, neither should we.
But can you imagine how US equities will respond if the dollar finally takes a dive?