The Australian Dollar's Diminished Role as a Risk Indicator

Reported about 23 hours ago

The Australian dollar, traditionally viewed as a risk proxy due to its export ties, is losing its correlation with global market sentiment amidst U.S. trade tensions. Despite a steady rise in value, analysts note that the currency's relationship with U.S. stocks has weakened significantly, highlighting a shift in dynamics influenced by U.S. economic policies and a growing reliance on offshore investments. This change in correlation may prompt traders to reconsider their strategies involving the Aussie.

Source: YAHOO

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