Precursors of the Bear
The Australian economy has long been highly associated with natural resources and commodities. So it is logical to think that the direction of the Aussie buck will be highly correlated with the direction of commodities in general. You will find in the first two charts that they are nearly identical in form, context, and directional bias. Such a break lower by these two markets would be deflationary.
Compression of the USD is showing up in event-based news at Bloomberg. CT is bullish on the buck for many moons. Int he last four months the market is churning below resistance soaking up supply and VIX is being repressed. The series of four charts in this gallery reveals the above and the market ready for a breakout and a run trough part.
A bullish dollar would be a Regime change from the bullish gold/euro inflationary backing of the global economy