Dollar at the best levels of the day
The US dollar has climbed to the best levels of the day as broader selling seeps into equities.
The commodity currencies are particularly hard hit with AUD/USD down 92 pips to 0.7687. The low of the week was 0.7666.
The bond market will act like an automatic stabilizer at some point. 10-year yields are down 2 bps to 1.10%. If they were to get all the way to 1.00%, you'd certainly see some dollar selling.
I just don't think there's a big scope for a real rout. There's so much excitement for the post-vaccine economy, that I can't see this lasting.
It's a long weekend in the US, so we might be seeing some positions squaring in a market that's certainly long and levered.
