The AUD/USD currency pair, which expresses the value of the Australian dollar in terms of the U.S. dollar, continues to rise as global risk sentiment remains largely positive. However, there are evident risks to this run which we should consider.
One of the most transparent ways of measuring risk sentiment is by keeping track of global equity performance. U.S. equities are one of the most popular equity markets in the world, and so they present a useful indicator. One of the starkest correlations in recent times is the strong, positive correlation between S&P 500 futures