AUD Performance is Concerning - BBH
Research Team at BBH, suggests that concerning is the Australian dollar's performance.
“We have brought to your attention the fact that the Aussie has been a good leading indicator of the US dollar's broader direction. It bottomed in mid-January, well before the broader turn in the markets on Feb 11. More recently, it peaked in late-April, while the other currencies did not peak until May 3. It bottomed on May 24, while the other major currencies did not bottom until May 30.
Earlier today the Australian dollar extended its recent gains to near our $0.7500 objective. However, it has since reversed lower, and is possibly setting up key reversal. That would require a close below yesterday's low near $0.7430. Meanwhile, a break of $0.7420 could signal a move toward $0.7380.”