AUD/USD and the ASX 200 have witnessed unequal recoveries since the covid crash, with the currency pair establishing gains well above February levels while the equity market remains ensnared at resistance. While both share a notable correlation with US indices, the current state of the two Aussie markets reveals the Dow Jones and AUD/USD are more in tune than that of the Dow and ASX, leaving the latter with some catching up to do.
That said, the Australian equity index has approached notable resistance at the 6,185 mark which has helped stall prior attempts higher.
As other risk assets continue their extensions, a bullish break above resistance for the ASX 200 could open the door for a continuation of its own and a possible break out trade, a move that could see the index close the gap to other risk assets. Read more…..
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Steven Wieting, Citi Private Bank global chief investment strategist, and Brad McMillan, Commonwealth Financial Network CIO, joins ‘The Exchange’ to discuss the sectors they’re favoring and offer their takes on the market.