Beyond the US dollar itself, the Aussie has been the biggest surprise so far this year, in terms of its ability to defy gravity. From the lows seen in January, AUDUSD has risen nearly 8% during the course of the year to date. This has come at a time when events in China have given more cause for concern, which would normally put pressure on the currency. Going forward, there are two schools of thought. The first is that the Aussie is eventually going to succumb and move lower. The second is that we are going to see further support as yields elsewhere move lower, making the yield pick-up available that much more attractive and giving support to the currency. Note that the US 10 year bond is below 2.50% and at the same time, before yesterday’s sell-off, yields on Italian bonds were at multi-year lows, leaving the highs of late 2011 as a distant memory. Longer-term, the Aussie risks still look to be lower, but for now, the urge to defy gravity is likely to remain strong For today, India is catching the attention as election results start to come through. The currency has rallied as the BJP led coalition has made substantial gains. This is offering further marginal support to the emerging market area in general. US housing starts and Michigan confidence are the main points of focus on the data front. For next week, it’s UK inflation data that will be the key focus for sterling, together with Fed meeting minutes. If the recent down-move in US yields is maintained, then this is going to be the main driver for FX and will likely continue to undermine the potential for a sustained rally in the dollar. Further reading: AUDNZD Dips Remain Attractive To Buyers US data looking good, so why did the dollar drop? 5 reasons FxPro - Forex Broker FxPro - Forex Broker Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss. View All Post By FxPro - Forex Broker Daily Look share Read Next Yield On Red Karl Schamotta 8 years Beyond the US dollar itself, the Aussie has been the biggest surprise so far this year, in terms of its ability to defy gravity. From the lows seen in January, AUDUSD has risen nearly 8% during the course of the year to date. This has come at a time when events in China have given more cause for concern, which would normally put pressure on the currency. Going forward, there are two schools of thought. The first is that the Aussie is eventually going to succumb and move lower. The second is that we are going to see further… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.