AUDUSD recovery
Falling Iron Ore prices, slowing China growth, COVID cases and more had all been weighing on the AUD for weeks. Now we seem to be at the bottom of the sentiment barrel with room to run higher as there is a retracement from very extended shorts.
If the USD picture suddenly became very bearish on a clear reflation narrative then note the possible break of the trendline higher on the daily. However, there is lots of stagflation talk doing the rounds right now. For me the picture for the USD is just a bit too mixed to have conviction here in the short term. However, the technical test is noteworthy and good to be aware of.
