Its Over, page-14665

...having watched markets day and night as well as how correlations behave, I have to say that it has been consistently true that the AUD behaves in a strong positive correlation with US equities.

...as I had said earlier, if we are going down the road of 58c Covid lows, the DXY would be north of 120 and we would well be truly in a currency crisis mode. DXY is now at 114.50, unstoppable momentum suggesting the Fed is signaling to funds to buy the dollar , Yellen wants a higher dollar to stem domestic US inflation, that only matters to them not want happens elsewhere around the world suffering from the backlash of the stronger greenback.

$A eyes 60 cents after psychological, technical level broken

Bloomberg
The Australian dollar may fall to its weakest level against the greenback since markets were ravaged in the early days of the pandemic, after breaking key technical and psychological supports.

The currency closed under 64.64¢ for a second day on Tuesday, a level that marks a 61.8 per cent Fibonacci pullback of its March 2020 to February 2021 rally. Further declines could see the Australian dollar fall toward 60¢, unwinding the remainder of that advance.

The Aussie has slumped 11 per cent against the greenback this year and dropped below the psychological 65¢ level as the dollar rallied on bets the Federal Reserve will aggressively raise interest rates and as traders sought haven assets in anticipation of a potential recession. The currency has also weakened because of concern over slowing growth in China, Australia’s largest trading partner.

“The tumult in global financial markets, lower metal prices, higher volatility and the weakening world economic outlook are weights on the Australian dollar,” Joseph Capurso, head of international economics at Commonwealth Bank of Australia, wrote in a note to clients. CBA expects the currency to fall to 62¢ early next year.