TuriBinda
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Stay long the AUD - the case for further AUD upside
The AUD was the best performer last week followed closely by the GBP and was the standout on Friday, gaining 1.3% vs the USD - hitting a high of 0.7877 and the strongest levels since March 2018. There's no doubt this is also a weak USD story and while US 5-year and 10-year real Treasury yields are climbing higher, traditionally a USD positive, we’re also seeing short-term interest rates finding strong buyers with the yield on 4-week US T-bills approaching zero. This seems to be negatively impacting the USD at a time when the long end has been rising. Take a look at the USDX 4-hour or daily chart and see the flow ... (full story)