Here is a look at which pair would benefit most if the DXY broke out of an pattern.
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I’ve flagged this pair since it was brought up on the live stream as a head and shoulders pattern. I thought it might break down today but it recovered just a tad.
The info about how the strength of the dollar affecting pairs is fascinating. It’s completely new to me, so thanks.
Technically, I think this is a pretty good trade if it breaks down. (I did not see that bull flag.....). Time will tell.
Ignoring technicals there is little political will for excessive QE or MMT or ZIRP/NIRP, and our govt debt is quite low, our banks are mostly exposed to domestic risk, covid is under control.
I suspect any AUD weakness will come from China-Aus trade tensions rather than USD strength.
This is contrary to past patterns where the AUD has signaled risk-on because of commodity exposure. It's likely our RBA will seek to boost exports by weaking the AUD if it reached 0.75 - but with interest rates at 0.25 and political resistance to govt deficit expansion this could be a crisis where that doesn't happen.
just thought that might be helpful
let me know what you think. Much appreciated!