With the USD maintaining a strong bearish tone following the US Dollar Index’s drop below trendline support early last week, commodity currencies and several Asian currencies continue to lead the charge higher. AUD/USD pushed to a high not seen since 1982 and is on course to hit 1.1200, especially as commodities stay buoyant.
Aluminium is a case in point – its surge over the past week is likely catalysing the AUD move (TRENDS II correlation map suggests a relatively strong relationship between aluminium and AUD/USD). Some of the triggers for further USD weakness can be seen in such charts as EUR/USD (1.4580) and in Asia, USD/PHP (42.15) and USD/THB (29.45).
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