This isn’t the look of a risk-off or nervous-looking market:
In fact, it looks quite the opposite with commodity currencies among the frontrunners while the yen, dollar and franc are lagging behind.
It’s tough to square the flows in major currencies when you compare the situation in equities and in bonds. Sure, the pessimism from earlier has been dialed back on both fronts but the aussie and kiwi have barely even showed much of any weakness throughout the day.
Both currencies are now trading close to their respective day highs against the dollar, with AUD/JPY up 0.4% and looking to contest the key trendline resistance @ 83.05 once again:
If there’s anything that stands out in the past two weeks, it is how the aussie and kiwi have been stubbornly resilient and in the event yen flows unwind should Russia-Ukraine tensions ease, I reckon there’s going to be a rather fast and furious break higher in those crosses if and when the time comes.
Elsewhere, the dollar is floundering a little with EUR/USD turning higher from around 1.1290 earlier to 1.1330 currently.