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One of the better currency indicators for the “risk on/risk off” trade is the Aussie$. A falling AU$ usually results in falling stocks and commodities! It has been holding up well of late. Now it hit Fib resistance, at the top of a bearish rising wedge and it has broken support in the past two days!
If history is a good guide, a decline is the AU$ should put downside pressure on risk assets!
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